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51sT  Congress,  »  SENATE.  i  Ex.  Doc. 

i  .  (    No.  54. 


1st  Session. 


TRADE  AND  TRANSPORTATION 


BETWEEN 


THE  UNITED  STATES  AND  LATIN  AMERICA. 


BY 


WILLIAM   ELEROY  CURTIS, 

Executive  Officir,  International  AMERigAN  Conference. 


WASHINGTON : 

GOVERNMENT   PRINTING   OFFICE. 

1890. 


LETTER 


THE  SECRETARY   OF  STATE, 


TRANSMITTING, 


In  compliance  with  law,  a  report  on  trade  and  transportation  between  the 
United  States  and  Latin  America,  prepared  for  the  use  of  the  Interna- 
tional American  Conference. 


February  13, 1890. — Referred  to  the  Committee  on  Foreign  Relations  and  ordered  to 

be  printed. 


Department  of  State, 
Washington,  D.  C,  February  12,  1890. 
The  President  of  the  Senate: 

In  accordance  with  section  5  of  the  act  of  Congress  approved  May 
24,  1888,  I  transmit  herewith,  for  the  information  of  the  Senate  and 
House  of  Representatives,  a  copy  of  a  report  entitled  "Trade  and 
Transportation  between  the  United  States  and  Latin  America,"  pre 
pared  by  William  Eleroy  Curtis,  for  the  use  of  the  delegates  to  the 
International  American  Conference. 

I  have  the  honor  to  be,  sir,  your  obedient  servant, 

James  G.  Blaine. 


c  o  isr  T  iH]  N  T  s . 


PAKT  FIRST. 

TRADE. 

Page. 

I. — Our  Commerce  with  Latin  Amkric.v 3 

The  population,  manufactures,  and  protlncts  of  Latin  America .» 3 

Natural  transportation  facilities 4 

Railways 5 

The  intercontinental  railway 5 

British  investments  - 7 

Magnitude  of  the  foreign  commerce 8 

The  increase  in  sixteen  years 9 

Domestic  development  of  the  United  States 9 

Enormous  increase  in  our  exports  to  other  countries,  but  a  small  increase 

in  those  to  Spanish  America 10 

Character  of  the  Latin- American  trade 11 

The  trade  not  afi'ected  by  our  tariff 11 

IL— What  is  sent  to  Latin  America 15 

List  of  articles  composing  the  cargoes  of  ships. 15 

Where  these  articles  are  produced 17 

Sample  cargoes 18 

Proportion  contributed  by  each  State 18 

Articles  contributed  by  each  State 18 

III. — HiSTORT  OF  TBTE   INTERNATIONAL  CONGRESS 21 

The  movements  of  1825  and  1S81 21 

The  South  American  Commission 22 

Its  conferences  with  merchants  of  the  United  States  and  those  of  Central 

and  South  America 22 

Its    conferences  with  the    several    governments  of  Central  and   South 

America 22 

Results  of  the  investigations 22 

Obstacles  in  the  way  of  trade 23 

Lack  of  transportation  facilities  the  fundamental  obstacle 24 

The  commerce  of  1888 24 

Analysis  of  the  carrying  trade 25 

An  increase  in  our  trade 26 

Comparative  statement  of  trade  in  1868  and  1888 26 

Exports  of  Great  Britain,  France,  and  the  United  States  compared 27 

The  opinion  of  an  expert 27 

IV. — The  Commerce  op  Mexico 29 

Her  exports 29 

Her  imports 30 

The  character  of  merchandise  imported ! 30 

The  cotton  trade 31 


VI  CONTENTS. 

PagB. 
IV. — The  Commkrck  of  Mexico— Continued. 

Faults  of  American  merchants  and  manufacturers 31 

Annoying  customs  regulations 31 

The  commercial  treaty  with  Mexico 32 

Mexican  sugar  and  coffee 32 

The  international  coiu 32 

V. — Thk  Commerce  of  Centrax,  America 33 

Exports  and  imports 33 

The  trade  in  cotton  goods 33 

The  great  variety  of  imports 34 

Reciprocity  treaties 34 

Proposed  treaty  with  Guatemala 34 

The  sugar  and  tobacco  of  Central  America 35 

The  opinion  of  an  expert 36 

Why  our  commerce  is  so  small 36 

ETidences  of  increased  exports 36 

How  our  imports  are  paid  for 37 

Difference  in  freight  rates 37 

Coinage  and  currency 38 

Subsidies  paid  by  Central  America 39 

VI. — The  Commerce  of  Colombia 40 

Exports  and  imports 40 

The  merchandise  shipped  to  Colombia 40 

Where  our  exports  come  from 41 

The  means  of  transportation 41 

The  proposed  common  coin 42 

Views  of  Mr.  F.  G.  Pierra 42 

The  port  of  Savanilla 42 

Steam-ship  facilities  at  Savanilla .• 43 

Subsidized  lines  to  Europe 43 

Faults  of  American  manufacturers 43 

Interior  transportation , 44 

The  trade  of  the  Isthmus 44 

Report  of  Thomas  Adamson,  consul-general 44 

VII. — The  Commerce  of  Venezuela 48 

Trade  increases  where  there  is  transportation 48 

The  exports  and  imports  of  Venezuela 48 

Why  England  monopolizes  the  cotton  trade 48 

/Forgeries  of  United  States  trade-marks 49 

Trade  not  affected  by  the  tariff 49 

Duties  charged  by  Venezuela 49 

Reciprocity  treaties 49 

How  the  Red  "  D"  Line  of  steamers  has  built  up  trade 49 

VIII.— The  Commerce  of  Ecuador 51 

Exports  and  imports 51 

Merchandise  sent  from  the  United  States 51 

Where  it  is  produced 51 

Transportation  facilities  to  Ecuador 52 

Advantages  of  freight  to  Europe 52 

Statement  of  Mr.  F.  G.  Pierra 52 

The  tariff  of  Ecuador 52 

A  reciprocity  treaty  desirable 53 

IX.— The  Commkrcbt  of  Peru 54 

Deplorable  condition  of  the  country 54 

Statement  of  the  foreign  department 54 


CONTENTS.  VII 

P»g«. 

IX.— The  Commerce  of  Peru — Continued. 

Hopeful  outlook  for  the  futuro 54 

Former  commerce  af  Peru 54 

Peculiarities  of  the  market 55 

The  prosperous  era  of  the  Republic 55 

Where  Peru  buys  her  merchandise 55 

Exportable  products 56 

Our  exports  to  Peru 56 

Reciprocity  treaties 56 

Transportation  facilities  and  freights 56 

X.— The  Commerce  of  Bolivia 57 

Her  exports  and  imports 57 

No  commerce  with  the  United  States 57 

Lack  of  statistics 57 

The  cotton  goods  trade 58 

Statement  of  the  Bolivian  consul-general 58 

Difficulties  of  transportation 58 

Mistakes  of  American  merchants 58 

Reciprocity  treaties 59 

XL— The  Commerce  of  Chili 60 

Exports  and  imports  in  1888 ---  60 

Exports  and  imports  in  1887 60 

Where  the  imports  come  from 60 

What  they  consist  of 61 

Share  of  the  United  States 61 

Shipping  statistics  of  Chili 61 

United  States  flag  seldom  seen 61 

The  Chilian  line  of  steamers 62 

The  wool  product  of  Chili 62 

How  trade  may  be  secured 63 

Popularity  of  American  goods 63 

The  question  of  freights 64 

The  international  coin 64 

XII.— The  Commerce  of  the  Argentine  Republic 65 

Enormous  increase  of  late  years 65 

The  division  of  trade 65 

Imports  and  exports  in  1888 65 

Classification  of  exports -  66 

Exports  of  cereals 66 

Increase  of  agricultural  population - 67 

Agricultural  advantages 67 

The  wool  clip 68 

A  bounty  on  exports  of  beef 68 

Trade  with  Germany 69 

Trade  with  Belgium 70 

Trade  with  France 71 

Trade  with  Great  Britain - 71 

Trade  with  the  United  States 72 

Increase  in  our  exports 72 

American  sample-houses 73 

Why  we  are  so  far  behind 74 

The  carrying  trade 74 

No  steamers  from  the  United  States 74 

Steam-ship  communication  with  Europe - 75 

Reasons  for  commercial  estrangement 75 


VIII  CONTENTS. 

Pagfc 
XII. — The  Commerce  of  the  Argentine  Republic — Continued. 

The  HouBtou  subsidy  to  New  York 75 

Cost  of  uiaintaiuiug  a  line 76 

Offer  of  the  Argentine  Government 76 

Proposition  of  John  Roach  &  Son 76 

Message  of  the  President 77 

Peace  and  prosperity  of  the  Republic 78 

The  Argentine  population 78 

Enormous  immigration 79 

Population  of  Buenos  Ayres 80 

The  railway  development 80 

Banks  of  the  Argentine  Republic 80 

Statement  of  William  H.  T,  Hughes 82 

Our  exports  to  Buenos  Ayres 82 

The  means  of  transportation 83 

The  question  of  prices 83 

Reciprocity  treaties 84 

The  lumber  trade 84 

Transportation  line  the  first  condition 85 

A  better  acquaintance  necessary 85 

Observations  of  an  Argentine 86 

The  question  of  transportation 86 

Discriminating  against  Argentine  wool 86 

Enormous  increase  in  wealth 87 

The  International  Congress 87 

XIII. — The  Commerce  of   Uruguay 88 

Resources  of  the  Republic 88 

The  imports  of  Uruguay 89 

The  obstacle  in  the  way  of  commerce .. 89 

Statement  of  Don  Jo86  Marti 89 

Our  want  of  faith  in  the  people 89 

Popularity  of  American  goods 90 

Increasing  trade  with  the  United  States 90 

XIV. — The  Commerce  of  Paraguay 91 

Devastatien  of  the  country 91 

Signs  of  a  revival  of  industry 91 

The  exports  and  imports  of  Paraguay 91 

XV.— The  Commerce  op  Brazil 92 

Enormous  foreign  trade 92 

Exports  and  imports  in  1888 92 

A  commercial  phenomenon 92 

Distribution  of  Brazil  trade 92 

How  it  is  carried  on 93 

The  triangular  voyages 93 

What  our  folly  has  cost 94 

Some  stupendous  figures 94 

All  due  to  the  lack  of  steam-ships 94 

Preference  for  American  goods 94 

The  imports  of  Brazil 95 

Brazil  desired  reciprocity 96 

Present  condition  of  the  Empire 96 

Appendix  A.  Exports  to  Latin  America  in  detail  and  by  customs  districts  .  97 


CONTENTS.  IX 


PART  SECOND. 

TRANSPORTATION. 

Page. 

I.— The  Carrying  Trade  op  the  World 105 

Present  couditiou  of  trausportation 105 

Subsidies  paid  by  all  uations... 106 

What  we  pay  foreign  ships 107 

What  our  lack  of  steam-ships  costs  us 107 

England's  monopoly  of  the  carrying  trade 108 

American  vessels  crowded  out 108 

Our  trade  with  Cuba 109 

Some  significant  figures 109 

II. — The  United  States  Postal  Service 110 

Total  cost  of  our  postal  service 110 

Postmaster-General  Vilas  on  the  encouragement  of  conmierce 110 

Extension  of  our  domestic  service Ill 

The  Spanish-American  service  reduced Ill 

Amounts  paid  to  all  steam-ships  for  forty  years 112 

Amounts  paid  to  American  steam-ships  for  forty  years 112 

Encouragement  of  commerce  by  land 112 

Expenditures  for  special  mail  facilities 112 

The  inland  steam-boat  service 113 

Inland  steamers  paid  by  distance 113 

Ocean  steamers  paid  only  for  letters  carried 113 

Inconsistency  of  our  Congress 114 

Statement  ofW.  H.  T.  Hughes 114 

Amounts  paid  to  inland  steamers 115 

An  example  of  inconsistency 115 

Mail  facilities  for  summer  resorts 116 

The  star-route  service 116 

Some  odorous  comparisons 116 

Complaints  concerning  our  steam-ship  service 117 

Appeal  of  the  Gulf  States  merchants 119 

An  appeal  from  San  Francisco 122 

III.— History  of  our  Forlign  Mail  Service 123 

The  act  of  1845 123 

Ten  years'  contracts  made  under  it 123 

The  act  of  1848 124 

Ten  years'  contracts  made  under  it 124 

The  act  of  1851 124 

Contracts  made  under  it , 124 

A  remarkable  contrast. . 124 

The  act  of  1852 126 

The  act  of  1855 126 

The  act  of  18.58 127 

Contracts  made  under  them 127 

The  act  of  1860 131 

The  act  of  1864 132 

The  acts  of  1865  and  1867 132 


X  CONTENTS. 

Page. 

III. — History  of  our  Foreign  Mail  Servick — Continued. 

The  Pacitic  Mail  subsidy 133 

The  Hawaiian  Islands  subsidy 133 

Rates  of  postage  before  the  Postal  Union 134 

The  reduction  of  ocean  postage  in  1874 134 

The  compulsory  law 135 

Report  of  the  Committee  on  Shipping 135 

Some  interesting  facts  and  figures 13G 

The  facts  in  the  case 136 

Report  of  the  Ship-Building  Committee 13/ 

The  act  of  1885 137 

Profits  of  the  Government  on  foreign  mails 138 

The  Australian  mail  service 138 

The  Venezuela  service  compared. 138 

Postmaster-General  Vilas  refuses  to  carry  out  the  law 139 

The  steam-ships  refuse  to  carry  the  mails 139 

This  action  contrasted  with  that  of  foreign  governments 140 

American  steamers  take  the  mails,  but  decline  the  pay 140 

Our  Pacific  Ocean  service 141 

Feeling  of  Australian  colonies  towards  the  United  States 141 

IV.— Steam-ship  Policy  of  Foreign  Nations 143 

Former  standing  of  the  United  States 143 

How  British  shipping  was  built  up 143 

England's  record  for  forty  years 144 

British  mail  pay  to  steam-ships  for  forty  years 145 

British  subsidies  to  South  American  lines 145 

New  ships  for  South  American  trade 146 

England's  naval  reserve 146 

Naval  reserve  subsidies 147 

British  mail  pay  in  1888 147 

v.— The  Policy  of  Canada 149 

Subsidies  paid  by  the  Dominion 149 

Contracts  with  Canadian  Pacific 149 

Contracts  for  new  steamers 149 

Eftect  upon  the  commerce  of  the  United  States 150 

Canada  seeking  South  American  trade 1.50 

VI.— The  Policy  of  France 1.52 

Subsidies  paid  by  the  French  Re})ublic 152 

Mail  contracts  with  French  companies .-.  152 

The  French  bounty  system 152 

Amounts  paid  annually  as  bounties 153 

French  lines  to  South  America 153 

Trade  between  France  and  the  Argentine  Republic 154 

VII. — The  Policy  of  Germany 155 

Germany  adopts  the  subsidy  policy 155 

Amounts  paid  annually 155 

German  lines  to  South  America 155 

A  German  lloating  commercial  exposition 156 

VIII.— The  Policy  of  Spain 157 

The  Spanish  subsidy  system 157 

Amounts  paid  under  it 157 

Additional  bounties  and  mail  compensation 157 

A  Spanish   floating  exposition 159 

IX.— The  Policy  of  Italy 160 

The  Italian  subsidy  system 160 


CONTENTS.  XI 

Page. 
IX. — The  Policy  of  Italy — Continued. 

Amounts  paid  under  it 160 

Bounties  on  construction  and  repairs 160 

Bounty  on  imported  coal 161 

Italian  lines  to  South  America 161 

X.— The  Policy  of  The  Nkthehlands 162 

Report  of  Hon.  Samuel  R.  Thayer 162 

Subsidies  paid  by  The  Netherlands 162 

Steam-ship  lines  to  South  America 162 

XI.— The  Policy  of  Belgium 164 

Compensation  for  carriage  of  mails 164 

Report  of  Minister  Terrell 164 

Report  of  Consul  Stewart 166 

Steam-ship  lines  to  South  America. 166 

Rates  of  freight  charged : 167 

XII.— Other  European  Countries 16-^ 

Subsidies  paid  by — 

Austria-Hungary 168 

Norway  and  Sweden 168 

Russia 168 

Portugal 168 

Japan 168 

Turkey 168 

XIII.— Policy  of  American  Nations 169 

Subsidies  paid  by — 

Mexico 169 

Guatemala 170 

San  Salvador 170 

British  Honduras 170 

Honduras 170 

Nicaragua , 170 

Costa  Rica - 170 

Brazil 171 

The  Argentine  Republic 171 

Chili 172 

The  West  India  Islands 172 

The  Bahama  Islands 172 

The  island  of  Trinidad 172 

The  island  of  Barbadoes - 173. 

The  island  of  Jamaica 173 

The  island  of  Tobago 173 

Dutch  Guiana 173 

XIY.— Our  Steam-ship  Lines  to  Latin  America 175 

The  Plant  Steam-ship  Line 175 

The  Morgan  Company 176 

Foreign  lines 177 

The  Atlas  Steam-ship  Company 177 

The  Red  Cross  Line 178 

The  Booth  Steam-ship  Company 178 

Royal  Dutch  West  India  Company 178 

The  Honduras  and  Central  American  Company 179 

Sloman's  New  York  and  Brazil  Line 179 

The  Spanish  West  India  Line 179 

New  York  and  Porto  Rico  Steam-ship  Lines 179 

Quebec  Steam-ship  Company 179 


XII  CONTENTS. 

Page. 

XIV. — Our  Steam-ship  Links  to  Latin  America — Coutiuued. 

New  York  and  Jamaica  Line 180 

Trinidad  Line 180 

TheTanrus  Line 180 

People's  Line  for  Hayti 180 

New  York  and  Yucatan  Steam-ship  Company 180 

The  Anchor  Line 180 

The  Atlantic  and  West  India  Line 181 

The  Winchester , 181 

The  Ern  Line 181 

The  New  Orleans  and  Belize  Royal  Mail 181 

Oteri's  Pioneer  Line 181 

New  Orleans  and  Colombia  Line 181 

Tramp  steamers 181 

Table  of  distances 182 

XV. — The  Pacific  Mail  Steam-ship  Company , 183 

Its  beirinuino;  and  extension 183 

The  coni])auy's  vessels 183 

Lines  and  length  of  trips 184 

Ports  at  which  vessels  touch 185 

Competition 185 

Growth  of  business  with  Central  and  South  America 186 

Mannfactures  of  the  United  States  in  demand 186 

Mail  subsidies 186 

XVI. — The  Ward  Line  of  Steamers 188 

Organization  and  fleet 168 

Americanpolicy  of  the  owners  188 

Government  obstacles  to  business 189 

Present  conditions  more  satisfactory 190 

Extension  of  the  line 190 

Composition  of  cargoes 190 

Competition  of  foreign  subsidized  line 191 

The  Spanish  subsidy 191 

What  the  United  States  paj'S 192 

Result  of  the  competition 193 

The  passenger  travel 193 

Mails  carried  at  a  loss 194 

The  cost  of  handling  mails 194 

Subsidies  advocated 195 

Exhibit  A,  correspondence  with  the  Postmaster-Goueral 195 

XVII. — United  States  and  Brazil  Mail  .Steam-ship  Company 198 

History  of  the  company  from  its  origin 198 

Difliculty  of  building  up  a  fleet 198 

Retrospective  r6sum6  of  trade 199 

Fleet  and  voyages 200 

Ports  visited  by  Brazil  line 201 

Value  of  the  line  to  the  United  States 202 

Cost  of  construction  and  maintenance  ofships 202 

Features  of  competition  —  "  Tramps"  and  subsidies 202 

How  tramp  vessels  are  managed 203 

Dangerous  condition  of  the  tramps 203 

Mixing  commercial  business  with  transportation 204 

How  they  cut  the  trade 205 

Inspection  of  American  shii>s 205 


CONTENTS.  XIII 

Page. 

XVII. — United  States  and  Brazil  Mail  Steam-ship  Compant — Continued. 

Condition  of  the  coastwise  traffic 206 

The  amount  of  competition  from  tramps 206 

European  competition 207 

The  English  Belgian  line 208 

European  vs.  American  Government  aid 208 

English  mail  packet  service 209 

The  Spanish  subsidies 210 

Compensation  for  carrying  United  States  mails 210 

What  the  Brazil  steamers  receive 210 

The  controversy  wi th  Postmaster-General  Vilas 211 

How  mails  are  handled 211 

The  promises  of  President  Harrison 212 

Compensation  the  Brazil  Company  has  refused 212 

Amount  the  line  would  have  received  under  the  old  law 213 

Advantages  of  coast  and  inland  steamers 214 

Cost  and  profit  of  handling  mail 214 

Brazilian  mail  contract 215 

Increase  of  trade  with  the  United  States 216 

Satisfactory  changes  in  methods  of  busini'ss 216 

Character  of  cargoes 217 

How  mail  carriage  should  be  paid  for 217 

List  of  United  States  and  Brazil  trade  steamers 218 

Cost,  cargoes,  and  rates 219 

Ships  in  the  triangular  trade 219 

Conclusion 219 

Exhibits 221 

Exports  by  the  Brazil  ships 221 

The  British  foreign  mail  service 221 

Special  subsidies  paid  by  Great  Britain 222 

Address  by  William  Eleroy  Curtis 224 

Reciprocity  treaties 225 

The  carrying  trade 225 

America  discovered  by  a  subsidized  ship 225 

Pay  should  equal  length  of  voyage 225 

Some  striking  comparisons 226 

Attitude  of  the  administration 227 

XVIII. — The  EedD.  Line  of  Steamers 228 

Description  of  line  by  Ernest  C.  Bliss 228 

Description  of  vessels  composing  line 228 

The  cost  of  construction  and  maintenance 229 

Competing  lines 229 

Compensation  for  carrying  the  mails 230 

The  cost  of  carrying  the  mails 230 

How  trade  can  be  developed 230 

XIX.— The  Proposed  Naval  Eeserve 233 

Recommendations  of  Secretary  Whitney 233 

The  question  of  coast  defense 233 

England's  naval  reserve   234 

Recommendations  of  Admiral  Porter 234 

A  tonnage  bill  the  simplest  plan 234 

The  question  of  free  ships 235 

What  we  have  paid  foreign  ship-owners 235 

The  need  of  a  mercantile  navy ^ 235 


XIV  CONTENTS. 

PagB. 
XIX.— The  Proposed  Naval  Reserve— Continued. 

Sbip-buikliug  a  plain  matter  of  business 236 

Enteri)iise  ot  the  French  Republic 236 

Appendix  A — Transportatiou  facilities  between  the  United  States  and  Latin 

America  in  1888 237 

Appendix  B — Report  of  House  Committee  on  Shipping .• 249 


PART  THIRD. 

I.— TOPICS  FOR  DISCUSSION 286 

Measures  to  preserve  the  peace 285 

The  proposed  customs  union 285 

Reciprocity  treaties .. 285 

The  question  of  wool 286 

Trade  not  affected  by  the  tariff 286 

The  question  of  transportation 287 

Uniform  weights  and  measures 287 

The  protection  of  patents  and  trade-marks 287 

Cheap  goods  demanded  by  the  people 288 

The  experience  of  a  New  York  firm 288 

The  form  of  the  forgeries 289 

Trade-marks  forgeries  in  Brazil 290 

The  proposed  international  coin 290 

The  lack  of  banking  facilities 290 

Testimony  of  an  expert 290 

The  opinion  of  an  Englishman 291 

Views  of  a  banker 291 

II. — The  Sugar  Trade  of  the  United  States 293 

Our  imports  of  sugar 293 

Revenues  collected  on  sugar 294 

Sugar  imported  from  Spanish  America 294 

Sugar  trade  with  Hawaii 294 

Imports  from  the  Hawaiian  Islands 295 

Exports  of  refined  sugar 295 

Fluctuation  of  trade  for  ten  years 296 

Consumption  of  sugar  in  the  United  States 297 

Relation  of  duties  to  value  of  sugar 293 

Exports  of  sugar  to  the  Argentine  Republic  and  Uruguay 299 

Steady  falling  off  in  the  trade 299 

Displaced  by  the  beet-root  sugar  of  Europe 300 

Beet-root  sugar  in  the  Argentine  Republic 301 

The  sales  of  refined  sugar  in  Brazil 301 

An  impending  struggle 302 

Sugar  trade  in  the  Argentine  Republic 302 

III.— The  Wool  Trade  of  the  Unitkd  States 304 

Imports  of  various  grades  of  wool 304 

Carpet  wools  from  South  America 305 

Wool  imports  by  countries 306 

Amount  of  carpet  wool  imported  by  the  United  States 306 

Wool  imports  in  1888 306 

Domestic  production  of  wool 307 

Benefit  of  the  removal  of  the  duty  on  carpet  wools 308 

Rapid  growth  of  the  carpet  trade , ,,,., 308 


CONTENTS.  XV 

Page. 
m. — The  Wool  Tradk  op  the  Unitko  Statks — Contiinu'cl. 

Importance  of  steamship  communication  to  the  wool  trade 309 

Development  of  wool  manufacture  in  the  United  States 310 

rV. — Credit  system  in  Spanish  America 312 

A  requirement  of  the  trade 312 

Systems  of  credit  in  Europe - 313 

Steamship  facilities  necessary 313 

How  it  is  done  in  England 313 

The  three  essentials  for  increased  trade 314 

Mexico 315 

Yucatan -. 315 

Costa  Rica 315 

Honduras 315 

Colombia 316 

Venezuela 317 

Brazil 317 

Uruguay 317 

Argentine  Republic 318 

Peru 318 

Cuba 319 

Porto  Rico 319 

Hayti 319 

v.— Coinage  and  Precious  Metals 320 

An  international  silver  coin 321 

A  method  suggested 321 

The  effect  of  such  an  arrangement 322 

Estimates  of  values  of  Spanish- American  coins 323 

Relative  weight  of  silver  coin 324 

Production  of  gold  and  silver 324 

Coinage  in  American  countries 325 

Coinage  in  the  United  States 326 

Production  of  precious  metals  in  the  United  States 326 

Ratio  of  silver  to  gold 327 

Product  of  Mexico 327 

Coinage  of  Mexico 327 

Recoinage  of  Mexican  silver  dollars 328 

Product  of  Bolivia 329 

Coinage  of  Peru 329 

Coinage  of  Colombia 330 

Uruguay 330 

Central  America 330 

Brazil 330 

Production  of  the  world 331 

VI.— Spanish  American  Customs  Regulations 332 

Little  complaint  in  Central  America 333 

Customs  regulations  in  Venezuela 334 

Assessments  by  weight 334 

A  great  cause  of  complaint 334 

Goods  shipped  "in  transit" 335 

Discrimination 335 

The  tariff  regulations  of  Mexico 336 

The  conditions  in  Chili 336 

Remarkable  rules  in  Peru 336 

The  tariff  in  Colombia 336 

Appendix  "A,"  trade-mark  forgeries  in  South  American  countries 339 


XVI  CONTENTS. 

Page. 

VII.— The  Plant  Stkaai-ship  Line 343 

Former  service  to  Havana 344 

Confereuce  with  postal  authorities 345 

The  action  of  Congress 346 

Establishment  of  fast-mail  service 347 

Correspondence  with  Postmaster-General 348 

Present  condition  of  the  service 360 

Steam-ships  in  use 352 

Our  foreign  mail  policy 353 

The  port  of  Tampa 354 


IP^RT   I. 


TRADE. 


S.  Ex.  5i 1 


I. 

OUR  COMMERCE  WITH  LATIN  AMERICA. 


The  total  population  of  Spanish  America,  including  the  West  Indies 
and  Brazil,  is  nearly  equal  to  that  of  the  United  States,  being  over 
50,000,000,  of  whom  not  less  than  5  per  cent,  are  European  subjects, 
and  not  more  than  3,000  natives  of  the  United  States.  There  are  about 
500,000  savage  Indians,  confined  to  the  interior  of  the  continent  of 
South  America,  and  a  few  small  tribes  in  Central  America,  numbering 
not  more  than  5,000  all  told.  Thus  nearly  every  inhabitant  of  the 
two  continents  of  Central  and  South  America  and  the  Antilles  is  a 
contributor,  directly  or  indirectly,  to  the  exports  of  the  country  in  which 
he  lives,  and  to  a  degree  a  consumer  of  imported  merchandise. 

PRODUCTS   OF  LATIN  AMERICA. 

The  exi»orts  are  raw  materials,  the  natural  or  cultivated  products  of 
the  several  countries;  and  the  imports  are  manufactured  articles  from 
Europe  and  the  United  States,  the  results  of  mechanical  industry. 
Wherever  there  are  manufactories,  as  in  Mexico,  Guatemala,  Chili,  and 
Brazil,  the  local  demand  is  invariably  in  excess  of  the  j)roduct,  and  the 
importing  merchants  are  called  upon  to  supply'  the  deficiency.  But  the 
mechanical  industries  are  so  meager,  and  their  output  so  small,  that 
they  scarcely  enter  into  trade  calculations,  and  add  but  an  atom  to  the 
wealth  and  commerce  of  the  countries.  A  few  steamers  would  carry 
the  entire  annual  product  of  the  factories  of  the  two  continents ;  and 
the  increase  is  so  small  as  to  offer  no  competition  to  foreign  i)roducers. 

BREADSTUFFS  AN  EXCEPTION. 

An  exception  should  be  noted,  however,  in  the  item  of  breadstuff's. 
Chili  has  already  driven  the  flour  of  the  United  States  off"  the  west 
coast  of  South  America,  and  now  supplies  Peru,  Ecuador,  and  Bolivia. 
The  California  millers  are  also  beginning  to  feel  the  competition  of 
Chili  at  Panama  and  along  the  west  coast  of  Central  America,  and 
unless  cheaper  freights  are  offered  from  San  Francisco  southward,  we 
shall  lose  a  large  and  lucrative  market. 

3 


4  TRADE    AND    TRANSPORTATION    BICTWEEN 

The  Aijjeiitiiio.  Ke])iiblic  was  an  iini)()rter  of  breadstutt's  a  few  years 
siuee,  but  the  agricultural  development  of  the  pampas  is  so  rapid  and 
exteusive  that  the  present  product  not  only  supplies  the  local  demaud 
but  furnishes  an  annual  surplus,  valued  at  $14,000,000,  for  export. 
The  same  is  true  of  Uruj;uay,  which  has  also  become  au  ex[)orter  of 
wheat  and  flour  withiu  the  last  two  or  three  years,  and  has  au  enor- 
mous productive  capacity  now  being  rapidly  developed  by  Italian  im- 
migrants. The  time  is  not  far  distant  when  these  three  countries  will 
deprive  the  United  States  of  the  greater  portion  of  its  flour  market  in 
the  West  Indies  and  South  America,  and  will  enter  into  active  com- 
petition with  us  in  Europe. 

THE   DRESSED-MEAT   TRADE. 

The  same  countries,  Argentina,  Uruguay,  and  Chili,  are  also  large 
l)roducers  of  sheep  and  cattle,  and  while  Chili  will  supply  the  west 
coast  with  beef  and  mutton,  the  Argentine  Kepublic  and  Uruguay  will 
eventually  have  a  serious  effect  upon  our  European  trade,  being  able 
f  or  ,  eir  peculiar  advantages  to  underbid  the  beef  producers  of  the 
United  States  anywhere  in  the  world.  Already  refrigerator  shi])s  are 
sailing  nearly  every  day  from  the  River  Plate  loaded  with  dressed  beef 
and  mutton  for  England  and  Germany,  and  packing  houses  are  being 
erected  on  an  extensi^'e  scale  under  an  $8,000,000  subsidy  from  the  Ar- 
gentine Government.  The  jerked-beef  supply  of  Brazil  and  the  West 
Indies  has  long  been  furnished  by  Argentina  and  Uruguay,  and  the  ex- 
portatious  to  Europe  already  amount  to  millions  of  dollars  annually. 

PORK   AND   DAIRY  PRODUCTS. 

In  pork  products  and  dairy  products  the  South  American  countries 
will  never  be  able  to  compete  with  us,  owing  to  climatic  reasons,  and 
will  continue  to  be  large  and  increasing  consumers.  With  these  ex- 
ceptions, and  some  articles  of  luxury,  they  will  eventually  have  a  suffi- 
cient local  supply  of  food  products,  and  become  active  rivals  for  the 
trade  the  United  States  now  enjoys  in  Europe.  The  River  Plate  Val- 
ley is  more  to  be  feared  than  India,  Russia,  or  Australia  as  a  com- 
petitor in  breadstuffs  and  provisions. 

NATURAL   TRANSPORTATION  FACILITIES. 

Its  possibilities  are  unmeasured ;  its  productive  area  is  greater  than 
that  of  the  Mississippi  Valley,  and  its  transportation  facilities  are  so 
convenient  and  extensive  that  vessels  for  Europe  can  literally  enter  the 
wheat  liclds  and  tlu-  ranches.  There  is  scarcely  a  spot  in  the  River 
Plate  country,  comprising  Argentina,  Uruguay,  and  Paraguay,  more 
than  500  miles  distant  from  a  navigable  river,  and  our  advantages  in 
this  respect  would  not  be  greater  than  theirs  if  ocean  steaniers  could 
load  at  I*ittsburgh,  Kansas  City,  or  St.  Paul. 


THE    UNITP:D    stater    and    latin    AMERICA.  f) 

The  Rio  de  la  Plata,  or  the  River  Phite,  as  it  is  coinmoiily  known 
otters  a  more  exleusive  system  of  unobstructed  navigation  iliaii  any 
river  iu  the  world,  and,  with  the  exception  of  the  Amazon,  pours  more 
water  into  the  oe(».an.  It  affords  more  miles  of  navigation  llian  all  the 
rivers  of  Europe  combined,  aud  more  than  the  Mississippi  with  its 
several  tributaries.  The  tide  from  the  Atlantic  reaches  2G0  miles  up 
the  stream,  and  ocean  ships  of  24  feet  draught  can  find  water  enough 
the  whole  year  at  a  distance  of  1,000  miles  from  its  mouth.  Vessels  of 
from  IC  to  20  feet  draught  can  go  2,700  miles  into  the  interior  of  the 
continent,  and  a  comparatively  small  amount  of  money — a  mere  fraction 
of  the  sum  that  has  been  spent  upon  the  Mississippi — will  furnish  a  path 
for  a  4,000  ton  vessel  from  New  York  or  Liverpool  to  the  very  heart  of 
Brazil,  by  way  of  Buenos  Ayres. 

The  navigation  of  the  Amazon  is  obstructed  by  natural  obstacles, 
which  it  will  be  difficult  to  remove ;  but  the  Orinoco  is  open  to  large 
vessels,  and  the  Rio  Negro,  in  the  southern  part  of  Argentina,  afJbrds 
access  to  Patagonia,  as  the  Magdalena  does  to  the  interior  of  Colombia. 

ARTIFICIAL  TRANSPORTATION  FACILITIES. 

The  Argentine  Republic,  Brazil,  Chili,  and  Uruguay  are  supplement- 
ing their  natural  transportation  facilities  by  extensive  railway  systems, 
and  will  soon  in  this  respect  be  as  well  equipped  for  commerce  as  Kan- 
sas or  Colorado  ;  aud  it  is  from  them  that  we  have  cause  to  fear  in  find- 
ing a  market  for  our  agricultural  and  pastoral  products.  They  can  place 
wheat  on  board  a  Liverpool  steamer  at  a  lower  price  than  we  can  place 
it  upon  a  lake  steamer  at  Duluth,  and  cau  stow  away  carcasses  of 
dressed  beef  and  mutton  in  refrigerator  ships  cheaper  than  our  West- 
ern ranchmen  can  land  their  live  stock  at  Chicago  or  Kansas  City.  Not 
only  are  their  transportation  facilities  cheaper  and  more  convenient, 
but  their  cost  of  production  is  much  less  than  ours,  so  that  as  rivals  in 
the  European  food  markets  they  will  be  formidable  aud  dangerous. 

THE  PROPOSED    INTERCONTINENTAL  RAILWAY. 

In  a  very  able  and  interesting  dispatch  to  the  Department  of  State, 
Mr.  JohnE.  Bacon,  United  States  minister  to  Uruguay,  thus  discusses 
the  proposed  intercontinental  railway  : 

Fortunately  the  United  States  is  not  confined  to  the  ocean  in  order  to  recover  this 
immense  South  American  commerce.  An  international  railway  would  not  only  con- 
trol but  monopolize  it,  and  in  such  a  way  as  to  defy  all  future  competition. 

Is  it  feasible  ?  When  I  began  to  study  this  question  three  years  ago,  I  was  in 
clined  to  regard  it  as  somewhat  visionary.  A  close  scrutiny,  a  more  intimate  ac- 
quaintance with  the  people  and  the  topography  of  the  country,  aconstant  intercourse 
and  conversation  with  able  and  distinguished  geologists  aud  topographical  eno-ineers 
here,  some  of  whom  have  been  over  the  ground  more  than  once,  and,  above  all,  the 
fact  that  within  these  three  years  railroads  have  been  actually  l>uilt  and  routes  sur- 
veyed for  at  least  one-third  of  the  distance  between  Buenos  Ayre>f  ami  Bogota  lead  me 
to  believe  that  the  great  international   highway  (railroad)  will   be  comideted  much 


G  TRADE    AND    TRANSPORTATION    BETWEEN 

sooner  1  ban  Las  been  anticipated.  This,  I  think,  can  be  clearly  demoufltrateil  by  a 
detailed  description  of  the  distance  and  routes  between  Bueuos  Ayres  and  Bogota,  <ir 
Cartagena,  or  Panama,  and  especially  of  the  railways  already  built  and  surveyed 
along  the  line  ;  and  it  will,  I  have  little  doubt,  astonish  many  to  know,  as  above 
stated,  that  within  only  three  years  one-third  of  the  whole  line  has  been  built,  or  is 
under  survey  and  construction  ;  in  fact  that  there  are  two  lines  so  built  and  under  con- 
struction, and  concessions  granted  for  at  least  two  more,  and  these  railways,  together 
with  shorter  ones  already  in  operation  in  Peru,  Ecuador,  aud  Bolivia,  with  which 
connections  might  be  easily  made,  would  make  the  distance  between  the  two  cities, 
Buenos  Ayres  and  Bogota,  to  be  filled  up  only  about  '2,000  miles.  It  is  by  no  means 
so  gigantic  an  undertaking  as  the  great  Pacific  road,  connecting  the  Atlantic  and 
Pacific,  over  3,000  miles.  I  allude  to  this  to  show  how  distance,  time,  obstacles, 
visionary  impediments,  sneer,  and  ridicule  vanish  before  concentrated  determination, 
energy,  capital,  and  skill. 

THE   WORK   ALREADY   BEGUN. 

Now,  why  can  not  this  proposed  international  railway,  one-third,  or  at  least  one- 
fourth  shorter  than  the  Pacific,  above  alluded  to,  bo  built,  and  built  at  •nee  (five  or 
six  years)  in  the  same  way  and  by  the  same  means?  The  answer  is  apparent,  and 
is  evident  from  the  very  fact  that,  within  the  short  space  of  three  years,  one-third 
of  it  has  already  been  built,  or  built  and  being  built,  aud  that  over  the  worst  part, 
the  "Gran  Chaco,"  between  the  Argentine  Republic  and  Bolivia. 

Every  possible  encouragement  is  aud  will  be  given  for  its  construction  by  the 
States  through  which  it  is  to  pass,  not  only  in  the  way  of  concessions  for  railway 
purposes,  but  by  a  guaranty  of  from  5  to  7  j)er  cent,  per  annum  interest  on  all 
amounts  invested  in  construction,  as  also  oxteusive  tracts  of  land  on  both  sides  of  the- 
road  ;  and.  as  the  line  would  run  through  what  has  been  always  rcg.arded  as  the 
richest  auriferous  regious  of  the  world,  to  say  nothing  of  its  other  niiueral  and  botani- 
cal wealth,  such  tracts  of  land  would,  in  all  probability,  prove  invaluable. 

To  assert  these  facts  is  a  matter  of  great  ease.  Let  us  prove  them.  I  have  be- 
fore me  a  railroad  map  of  South  America,  prepared  with  great  care  and  at  consider- 
able expense,  from  which  the  roads  already  built,  as  also  those  in  process  of  construc- 
tion, etc.,  between  Buenos  Ayres  and  Bogota,  can  be  distinctly  traced,  the  distances 
ascertained,  etc. 

[Note. — Mr.  Bacon's  description  of  the  proposed  lines  will  be  found  at  the  end  of 
this  chapter,  marked  Appendix  A.] 

THE   PRESENT  OUTLOOK. 

(1)  Within  the  last  three  or  four  years  about  one-thii'd  of  the  line  has  been  built ; 
that  is,  railways  with  which  the  international  road  could  connect. 

(2)  Concessions  are  being  annually  granted  in  the  different  republics  through 
which  it  would  pass  for  the  construction  of  other  railways  that  might  form  con- 
necting links. 

(3)  These  concessions  are  generally  of  the  most  liberal  nature,  such  as  a  guaranty 
of  5,  G,  and  7  per  cent,  per  annum  upon  all  sums  invested  in  construction,  and  also  liberal 
grants  of  laud  on  both  sides  of  the  route,  exemption  from  taxation,  importation  of 
all  needed  railway  supplies  free  of  duty,  etc.  For  instance,  the  late  concession 
granted  by  Paragnay  to  General  Osborn  (ex-United  States  minister  to  the  Argentine 
Republic)  for  a  railway  from  the  light  bank  of  the  Paraguay  River  across  the  Chaco 
to  the  Bolivian  frontier,  concedes,  among  other  things,  along  the  whole  length  of  the 
line,  60  meters  wide  of  land  shall  be  delivered  for  the  line,  and  also  full  proprietary 
rights  gratis  of  alternate  lots  of  land  on  each  side  of  the  line,  each  lot  to  be  of  10 
kilometers  fronting  Ihc  line  and  20  kilometers  iude))th,  exemption  from  taxation  for 
forty  years  after  the  completion  of  the  line,  freedom  of  employ68  from  military  serv- 
ice, etc. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  7 

(4)  The  republics  along  tlio  whole  Hue  are  anxious  for  the  coiistnu'tioii  of  riiil\v;iy  i, 
and  are  offering  concessious  so  liberal  that  they  nuist  attract  capital. 

(5)  The  liberality  of  these  concessioua  is  apparent  from  the  fact  lliat  they  are 
generally  sold  by  the  origiual  concessionaires  at  greatly  adTauced  prices.  As  an  ex- 
ample of  this,  the  papers  state  that  Dr.  Stewart  has  been  offered  for  his  late  couces- 
sion  of  a  railway,  from  Posadas  to  Villa  Rica,  in  Paraguay,  $100,000. 

(6)  European  capital  and  immigration  are  steadily  flowing  to  many  of  these 
countries,  and  will,  in  all  iirobability,  continue  to  do  so. 

(7)  The  wish  to  buikl  the  whole  line  is  general,  and  the  feasibility  admitted.  Indeed, 
the  probability  of  its  construction  is  occupying  the  public  mind  more  and  more  every 
year. 

(8)  The  immense  tracts  of  land  granted  to  the  concessionaires  have  made  largo 
fortunes. 

(9)  In  some  of  these  republics  rival  capitalists  are  striving  for  these  concessions. 

Many  other  reasons  might  be  stated,  if  necessary,  and  time  and  space  at  our  com- 
mand. Indeed,  it  is  par  excellence  the  age  of  railways  and  railway  investmeuts, 
especially  in  South  America.  While  writing  I  see  it  stated  in  the  South  American 
Journal  of  last  month  that  a  "Registration  company  "  has  been  formed  in  Loudon 
for  the  construction  of  a  line  in  Colombia  from  Santa  Marca  to  Banco,  on  the  Mag- 
daleua  River,  with  a  capital  of  £600,000;  and  also  a  line,  in  the  same  republic,  from 
Santander  to  Bucuramaugo. 

There  are  over  twenty  railways  in  operation  in  the  Argentine  Republic,  and  cou  • 
cessions  granted  for  several  more.  The  construction  cost  of  those  now  in  operation 
is  estimated  at  a  little  over  $40,000  per  mile.  Taking  this  as  a  fair  average,  and  es- 
timating the  international  line  from  Buenos  Ayres  to  Bogota  to  bo  3, GOO  miles,  and 
deducting  the  lirst-class  railway  already  in  operation  between  Buenos  Ayres  and  Ju- 
juy,  993  miles,  and  which  is  the  moat  direct  route  to  Bogota,  there  would  be  left  to 
be  built,  without  deducting  for  the  other  links  above  referred  to  in  describing  this 
route,  2,610  miles,  at  a  cost  of  $40,000  per  mile,  or  $104,400,000. 

John  E.  Bacon. 
Montevideo,  January  11,  1888. 

BRITISH  INVESTMENTS  IN   SOUTH   AMERICA. 

European  capital  has  regarded  the  immense  profits  paid  by  our  cattle 
industry  with  jealous  eyes,  and  the  amount  invested  in  Texas,  Colorado, 
and  the  Territories  shows  how  desirous  they  are  to  share  it;  but  the 
increasing  price  of  land  and  cattle  in  this  country  has  diverted  their 
attention  elsewhere,  and  they  have  found  in  Argentina  and  Urnguay 
a  place  where  the  same  area  of  pasturage  and  an  equal  number  of 
cattle  can  be  purchased  for  about  one-half  the  money.  Millions  of 
dollars  are  being  invested  by  foreigners  in  this  industry,  the  English- 
men generally  taking  cattle  ranches  aiul  the  Irishmen  and  Scotchmen 
sheep.  There  are  now  one  hundred  million  sheep  in  the  Argentine 
Eepublic  and  eleven  million  in  Uruguay,  while  there  are  thirty  million 
cattle  in  Argentina,  seven  million  in  Uruguay,  and  three  million  in 
Paraguay.  The  significance  of  these  figures  can  be  better  realized  by 
comparison.  There  are  ninety-six  sheep,  eighteen  cattle,  and  four 
horses  for  each  inhabitant  of  the  River  Plate  country,  and  only  eighty 
sheep,  seventy  cattle,  and  twenty  horses  for  every  one  hundred  inhabit- 
ants of  the  United  States ;  and  their  stock  interests  are  growing  faster 
than  ours. 


8  TRADE    AND    TRANSPORTATION    BETWEEN 

MAGNITUDE   OF   SPANISH  AMERICAN   COMMERCE. 

People  who  have  uot  studied  the  subject  have  very  little  conceptiou, 
of  the  magnitude  and  value  of  the  foreign  commerce  of  Central  and 
South  America.  The  fifty  millions  of  people  south  of  the  Rio  Grande 
and  the  Gulf  of  Mexico  are  engaged  in  a  trade  which  amounts  to 
$1,000,000,000  annually,  nearly  evenly  divided  between  exports  and  im- 
ports ;  and  in  the  countries  south  of  the  Tropic  of  Capricorn,  those  of 
the  temperate  zone  of  South  America,  the  foreign  commerce  is  increas- 
ing with  amazing  rapidity. 

The  total  value  of  the  foreign  commerce  of  these  countries  increased 
from  $709,000,000  in  1870  to  $1,014,000,000  in  1884,  a  gain  of  $304,732,000, 
or  43  per  cent.  This  increase  of  commerce  during  the  period  indicated 
compares  favorably  with  the  increase  of  the  trade  in  merchandise  of  the 
principal  commercial  nations  of  the  globe,  being  greater  than  that  of 
Great  Britain,  which  increased  27.2  per  cent.,  and  little  less  than  that 
of  France,  which  increased  45.6  per  cent.  The  trade  in  merchandise  of 
the  United  States  increased  from  $828,730,000  in  1870  to  $1,547,020,000 
in  1884,  showing  an  increase  of  86.7  per  cent. 

The  imports  of  Latin  America  during  the  same  period  increased  from 
$337,353,000  to  $460,662,000,  a  gain  of  $123,309,000,  or  36.6  per  cent.,  and 
the  exports  from  $371,907,000  to  $550,325,000,  a  gain  of  $178,418,000, 
or  48  per  cent. 

The  comparative  magnitude  of  the  foreign  commerce  in  1884  of  the 
countries  was  as  follows : 

Commerce  of  the  year  1884. 


Countries. 


Brazil 

Argentine  Republic 

Cuba 

Chili 

Mexico 

Another 

Total 


Imports. 


$100,525,802 
77,  6-0,  57-i 
58, 432, 105 
49,  055,  720 
27.  300,  856 
147,  126, 488 


400,661,005 


Exports. 


$118,  323,  551 
58, 100,  097 
00,  779,  204 
72,710,088 
41,807,505 
102,  597,  415 


550,  324,  550 


Total 
commerce. 


$218. 849, 413 
135,721,271 
12.5,211,309 
122,371,808 
69,108,451 
342,  728. 903 


1,013,991,215 


COMMERCE  IN  1886. 

In  1886,  the  latest  year  for  which  the  complete  statistics  are  available? 
the  foreign  commerce  of  Latin  America  reached  a  total  of  $973,180,452, 
of  which  $473,695,941  were  imports,  and  $499,484,511  were  exports. 

Of  this  trade  Brazil  had  the  greater  share,  her  imports  amounting  to 
$107,835,819,  her  exports  $105,449,044,  and  her  total  foreign  commerce 
$214,284,263. 

The  Argentine  Kepublic  stood  second  in  importance,  with  $97,658,000 
imports  and  $69,834,000  exports,  making  a  total  of  $167,492,000. 

The  island  of  Cuba  came  third  with  a  total  commerce  of  $125,211,369, 
divided  into  imports  $58,432,165,  and  exports  $66,779,204. 


THE  UiNiTr.n  stativS  and  latin  America. 


9 


Cbili  is  the  next  on  the  list  with  $40,096,000  imports,  $51,259,000  ex- 
ports, a  total  of  $91,355,000. 

THE   GAIN  IN  SIXTEEN  YEARS. 

During  the  period  between  1870  and  1886  the  total  gain  was 
$203,921,098.  The  greatest  increase  was  seen  in  the  Argentine  Repub- 
lic ($99,375,599),  the  next  in  Cuba  ($35,(;78,227),  the  next  in  Chili 
{$24,099,970),  and  the  next  in  Brazil  ($20,707,000).  The  increase  in  Uru- 
guay was  $15,884,000,  in  Venezuela  $14,077,000,  and  in  Colombia 
$10,314,000,  while  all  the  other  nations  shared  in  lesser  proportions. 

If  a  comparison  could  be  made  with  the  year  1888  a  still  greater  in- 
crease would  be  shown,  for  there  is  no  doubt  that  during  the  last  year 
the  commerce  of  Latin  America  surpassed  even  that  of  the  year  1884 
and  exceeded  a  thousand  millions.  The  increase  in  Chili  and  the 
Argentine  Republic  alone  would  carry  the  total  above  that  sum,  while 
all  the  other  nations  either  held  their  own  or  showed  progress. 

MATERIAX,  DEVELOPMENT   OF  THE  UNITED  STATES. 

In  this  vast  expansion  of  the  commerce  of  the  countries  nearest  us 
and  those  which  are  our  natural  trade  allies,  the  United  States  has  had 
but  a  trifling  share.  Our  own  growth  has  been  phenomenal.  The  de- 
velopment of  our  material  resources  and  our  increase  in  wealth  has 
astonished  the  world. 

Our  population  has  leaped  from  38,900,000  in  1870  to  65,000,000 
(estimated),  in  1889. 

The  value  of  our  manufactures,  which  in  1870  was  four  billions  of 
dollars,  has  increased  to  eight  billions,  and  our  natural  wealth,  which 
in  1870  was  thirty  billions  of  dollars,  is  now  estimated  at  fifty-six  bil- 
lions. 

The  following  table  from  the  American  Economist  shows  some  other 
interesting  comparisons: 


Description. 


Gold,  silver,  and  paper  currency 

Gold  coin 

Silver  coin 

Foreign  commerce 

Miles  of  railroad 

Annual  railroad  freight  earnings 

Annual  railroad  passenger  earnings 

Telegraph  lines miles 

Tons  pig-iron  produced 

Tons  steel  rails  produced 

r>ari  els  petroleum  produced 

Tons  sugar  used 

Tons  coal  mined 

Bushels  wheat  raised 

Bushels  com  raised 

Bushels  oats  raised 

Value  farm  animals 


1870. 


$900, 

$130, 

$30, 

1,000, 

$360, 
$136, 


50, 

289, 

1,  200, 

320, 

$1, 650, 


000,  000 
000,  000 
000,  000 
000, 000 

77, 000 
000,  000 
000,  000 

73,  000 
000,  ooo 
750,  000 
000,  000 
750, 000 
000,  000 
000,  000 
000,  000 
000, 000 
000, 000 


$1,  700, 

$705, 

$380, 

$1,500, 

$040, 
$240, 


1, 

110, 

450, 

2, 000, 

700, 

$2,  500, 


000,000 
000,  000 
000,  000 
000,  000 
157, 000 
000,  000 
000,  000 
171,000 
000, 000 
250, 000 
000,  000 
fOO,  000 
000,  000 
000,  000 
000,  000 

000,  ooo 

000, 000 


10 


TRADE  AND  TRANSPORTATION  BETWEEN 


AN  AMAZING  CONTRAST. 

But  (iiiriiifj  all  tlicse  prosperous  years,  amid  all  this  prodigoiis  devcl- 
opineiit,  our  export  trade  to  Latiu  America  almost  stood  still,  and  that 
market  was  left  to  the  Europeau  traders.  There  was  a  heavy  ^aiii  in 
our  imports  of  raw  material  from  those  countries,  however.  In  1S08 
they  were  but  $S.i,409,000,  in  1888  they  had  reached  $181,058,()()(),  an 
increase  of  ninety-eight  millions,  while  our  ex[)ort  trade  increased  on)}- 
sixteen  millions. 

The  following  table  shows  the  increase  of  our  exports  to  all  the  world, 
compared  with  the  increase  to  Latin  America  from  1868  to  1888 : 


Tear. 


1808, 

1870 

1870. 


Total  ex- 
ports. 


$^75,  737,  000 
450,  927,  000 
596,  .S90,  000 


Exports 
to  South 
AmiTica. 


$33,  107,  000 
r>0,  152.  000 
57,  6i  0,  000 


Tear. 


1880 
1880 

1888 


Total   ex- 
porta. 


$85-2,781,000 
751,  988,  000 
742,  368,  000 


Exports 
to  Soutli 
Ainurica. 


$58,451,000 
60,310,000 
69,  273,  000 


It  will  be  noticed  that  the  greatest  gain  in  our  Spanish-American 
commerce  was  during  the  last  two  years. 

The  difference  between  the  growth  in  our  export  and  our  imjiort  trade 
with  Spanish  America  is  due  to  the  fact  that  the  transportation  facili- 
ties during  this  [)eriod  have  been  contrplled  by  foreigners,  chiefly  Eng- 
lishmen, who  so  regulated  the  voyages  of  their  ships  that,  while  there 
were  plenty  of  facilities  for  freight  to  reach  the  United  States  from  all 
the  countries  south  of  us,  there  was  no  way  for  merchandise  from  the 
United  States  to  reach  some  of  them  unless  a  sailing  vessel  was  char- 
tered. 

CUE  SHARE  OF  THE  LATIN- AMERICAN  TRADE. 

The  share  of  the  United  States  in  the  commerce  of  Latin  America 
during  the  year  1888  was  $244,219,000;  of  which  our  imports  were  valued 
at  $175,220,000,  and  our  exports  $08,990,000.  Iir  other  words,  we  bought 
35  per  cent,  of  what  our  neighbors  had  to  sell,  and  sold  them  less  than 
15  per  cent,  of  what  they  iiurchased. 

This  phenomenon  is  not  new,  and  it  should  not  be  suprising.  It  has 
been  exhibited  for  more  than  a  quarter  of  a  century.  Since  the  close  of 
the  war  we  have  i)aid  our  neighbors  in  the  settlement  of  these  balances 
a  sum  greater  than  the  principal  of  the  public  debt,  and  the  total  con- 
tinues to  roll  up  at  the  rate  of  one  hundred  and  ten  millions  a  year. 
During  the  last  twenty  years  the  balance  against  us  in  our  trade  with 
Latin  America  has  been  nearly  three  thousand  million  dollars,  which 
we  have  jiaid  in  gold. 

We  have  expended  the  profits  of  our  European  and  Asiatic  trade  in 
purchase  of  raw  materials  in  Central  and  South  America,  while  those  of 
whom  we  have  been  buying  spend  the  proceeds  in  England,  France 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


11 


and  Gorinany  for  niaiuiffictnred  articles,  70  per  cent,  of  which  they  migbt 
XJurcliasu  hereof  better  quality  and  at  similar  prices. 


CIIAIJAGTER   OF  THE   TRADE. 


.  Onr  trade  with  Spanish  America  is  confined  to  a  few  articles.  The 
following  table  shows  the  character  and  amount  of  merchandise  im- 
ported in  1887  : 


Articles. 


CliPiiiicals,  (Iruirs,  dyes,  and  mcdicinfis 
Cocoa,  crude  and  Icavea,  and  shells  of. 

(JoUce 

Fruits  including  nuts , 

Hides  and  skins,  other  than  fur  skins  , 
India  rubber  and  gutta-ptTclia,  crude  . 

Suaar  and  molasses 

Tobacco,  and  inanufactupes  of , 

Wood,  unmanufactured 

Woiil,  unniauufacturt'd 

All  other  merchandise 

Total  imports 


1887. 


fi75,  063 
557,  253 
060,  026 
619,920 
409,  572 
491,  300 
560,  500 
731,  663 
154,  713 
551,  907 
756,  609 


172,  468,  526 


The  following-  table  shows  the  character  and  amount  of  merchandise 
exported  from  the  United  States  to  those  countries  during  the  same 
year,  and  in  1880,  by  which  the  fluctuations  in  trade  may  be  compared : 


Articles. 

1887. 

1880. 

Increase. 

Decrease. 

Dollars. 
12,  726, 167 
5,  463,  9.-9 

7,  273, 100 
2,  867,  052 

8,  678,  710 
7, 797,  272 

20,  098, 189 

Dollars. 

14, 144,  660 
3,  800,  541 
6,  515,  993 
1,  499, 860 
8,  762,  860 
6,203,515 

17,  524, 425 

Dollars. 

Dollars. 
1,418,493 

1,  663, 448 
757, 107 

Iimi  and  steel,  and  manufactures  of 

1,  367, 192 

Provisions,  comprising  meat  and  dairy  products 

84, 150 

1,593,757 
2,  573,  764 

64,  904, 479 

58.451,8.')4 

6,  452,  625 

THE  TRADE  NOT  AFFECTED  BY  OUR  TARIFF. 

As  will  be  noticed  in  the  above  table,  our  protective  tarifl'  system  has 
no  influence  whatever  upon  the  trade,  although  the  advocates  of  its 
reduction  or  abolishment,  in  ignorance  of  the  facts,  continue  to  assert 
and  reiterate  that  the  duties  imposed  upon  imported  goods  prohibit  us 
from  reaching  the  Latin- American  markets.  The  cost  of  labor  and  the 
wages  paid  to  workingmen,  which  are  from  50  to  100  per  cent,  higher 
in  the  United  States  than  in  any  other  part  of  the  world,  naturally  in- 
crease the  cost  of  production  in  a  similar  ratio,  but  it  is  dail^^  demon- 
strated, nevertheless,  by  the  actual  experience  of  merchants  engaged 
in  trade  with  every  one  of  the  countries  on  this  hemisphere,  that  the 
manufacturers  of  the  United  States  can  compete  with  those  of  Great 
Britain,  France,  and  Germany  in  nearly  every  article  we  export,  and 
the  infringement  of  our  patents  and  the  forgery  of  our  trade-marks 
prove  the  superiority  and  popularity  of  American  goods.    Our  mer- 


12  TRADE  AND  TRANSPORTATIOX  BETWEEN 

chants  can  not  only  meet  those  of  Europe  on  equal  teiu)s,  but  iniinense 
quantities  of  merchandise  are  annually  sent  from  the  United  States 
to  South  America  by  way  of  Bremen,  Hamburg,  Antwerp,  and  Liver 
pool,  and  are  sold  at  a  profit  after  crossing  the  Atlantic  twice. 

In  a  recent  dispatch  to  his  Government,  Sir  George  Hugh  Wyudham, 
British  minister  to  Brazil,  complains  of  the  preference  shown  by  the 
people  of  that  empire  for  American  manufactures,  and  says  that  out 
of  two  hundred  and  fifty-two  locomotives  in  use  upon  eighteen  rail- 
roads of  the  Brazilian  Empire,  two  hundred  and  thirteen  were  manu- 
factured in  the  United  States  and  only  twenty-eight  in  Great  Britain. 


Appendix  A. 

THE   SEVERAL  ROUTES  OF  THE  PROPOSED  INTERCONTINENTAL  RAILWAY. 

[From  the  Report  of  John  E.  Bacon,  U.  S.  Minister  to  Uruguay.] 

I  will  describe  in  detail  three  lines  now  projected,  and  in  great  jiart  constructed, 
between  Buenos  Ayres  and  the  Bolivian  frontier,  a  distance  of  about  1,100  miles,  be- 
ing one-third  of  the  whole  line  between  that  city  and  Bogota.  First,  the  railway 
from  Buenos  Ayres  to  Kosario,  186  miles ;  Rosario  to  Cordoba,  246  miles ;  Cordoba  to 
Tucuman,  341  miles;  Tucuman  to  Jujuy,  220  miles;  total,  993  miles.  The  above  is 
now  built  and  in  operation.  Then  from  Jujuy,  almost  on  the  Bolivian  frontier,  to  La 
Paz,  the  capital  of  Bolivia,  500  miles;  from  La  Paz  to  Santa  Rosa,  Bolivia,  built,  220 
miles  ;  Sauta  Rosa  to  Cuzco,  not  built,  190  miles  ;  Cuzco  to  Santa  Rosa,  Ecuatlor,  not 
built,  880  miles;  Santa  Rosa  to  Hiradot,  Colombia,  not  built,  450  miles;  Hiradot  to 
Bogota,  built,  140  miles  ;  total,  2,430  miles.  This  line,  it  will  be  seen,  gives  993  miles 
in  operation  from  Buenos  Ayres  to  Jujuy,  and  2,430  miles  from  Jujuy  to  Bo^jota,  of 
Avhich  360  miles  are  already  constructed,  leaving  to  be  built  2,070  miles.  The  route 
heads  all  the  rivers,  principally  tributaries  to  the  Amazon. 

A  SECOND  ROUTE. 

Second.  Buenos  Ayres  to  Santa  Rosa,  Argentine  Republic,  built,  450  miles ;  Santa 
Rosa  to  Posadas,  surveyed  and  projected,  not  built,  220  miles;  Posadas  to  Villa  Rica, 
Paraguay,  surveyed  and  projected,  not  built,  175  miles;  Villa  Rica  to  Asuncion, 
Paraguay,  partly  built  and  to  bo  finished  by  next  spring,  175  miles ;  Asuncion  to 
Sucre,  Bolivia,  projected  and  concession  granted,  700  miles ;  Sucre  to  La  Paz,  Bolivia, 
220  miles  ;  total,  1,940  miles.  From  La  Paz  to  Bogota,  as  indicated  in  the  first  route, 
1,880  miles,  of  which  there  are  in  operation  about  910  miles  ;  to  this  may  be  added 
395  miles  between  Santa  Rosa  and  Posadas,  and  Posadas  and  ViUa  Rica,  Paraguay,  so 
surveyed  and  projected  as  to  bo  sure  to  be  built  within  two  years  and  may  bo  assumed 
to  be  built ;  making  a  total  of  2,515  miles. 

THE  THIRD   ROUTE. 

Tliird.  A  route  from,  at,  or  near  Asuncion,  Paraguay,  as  follows:  Along  the  Pel - 
comayo  River,  across  the  Gran  Chaco,  from  near  Asuncion  to  Salinas,  near  the  Bolivian 
frontier,  620  miles;  Salinas  to  Potosi,  Bolivia,  540  miles  ;  Potosi  to  La  Paz,  385  miles, 
not  built;  La  Paz  to  Arequipa,  Peru,  built,  380  miles;  Arequipa  to  Bogota,  about 
the  same  distance  as  from  La  Paz  to  Bolivia,  1,880  miles  ;  Asuncion  to  Buenos  Ayres 
HO  surveyed  and  projected  as  to  be  presumed  to  be  built;  in  fact,  the  greater  part 
built,  1,020  miles;  from  which  may  l)o  reasonably  deducted  the  distance  from  Buenoa 
Ayres  to  Asuncion,  1,020  miles,  and  from  La  Paz  to  Arequipa,  built,  480  miles,  leaving 
a  total  of  3,252  miles. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  18 

This  hitter  route  has  been  projected  l>y  the  great  Buenos  Ayres  railroad  kiuj^s,  the 
Messrs.  Clark,  though  only  to  Arequipa,  and  is  called  "The  South  American  Itail- 
■way," 

THE  LINE  FKOM    BUICNOS  AYRKS  TQ  VALPARAISO. 

The  whole  line  from  Buenos  Ayres  to  Vali)araiso  will  shortly  be  thrown  open  to 
trade.  This  line,  when  liiiished,  will  revolutionize  trade,  and  divert  most  of  that  of 
the  Pacific  coastof  Chili  and  Bolivia  to  Buenos  Ayres,  instead  of  around  the  cape,  the 
distance  being  miich  less  and  the  freights  much  cheaper.  It  will  also  greatly  facili- 
tate travel,  the  mail,  specie,  and  valuable  packages  of  merchandise  to  and  from  Aus- 
tralia, putting  Melbourne  and  London  within  a  voyage  of  thirty -seven  hours;  in  fact, 
connecting  the  Pacific  and  Atlantic  between  Valparaiso  and  Buenos  Ayres,  the  time 
required  being  only  forty  hours. 

This  connection  and  communication  has  given  rise  to  a  fourth  international  pro- 
jected route,  as  follows  :  Buenos  Ayres  to  San  Felipe,  in  the  Argentine  Republic, 
built,  660  miles  ;  San  Felipe  to  Coquimbo,  partly  built,  2.50  miles  ;  and  from  Coquimbo 
to  Lima,  1,320  miles  ;  Lima  to  Bogota,  1,100  miles  ;  total,  3,330  miles.  Of  this  route — 
Coquimbo  to  Bogota — parts  have  been  built,  notablj^  the  line  from  Yea  to  Chaucay, 
passing  Lima,  about  300  miles;  other  short  connections,  approximating  250  miles — a 
total  of  550  miles;  deducting  660  miles  already  built,  there  is  still  to  be  constructed 
2,120  miles. 

This  route,  throughout  its  entire  length,  runs  along  the  Andes,  until  it  reaches 
Quito,  or  Guayaquil,  in  i^cuador,  whence  it  turns  northeast  towards  Bogota.  It  is 
said  to  be  the  richest  mineral  route  of  the  world,  including  the  regions  of  gold  and 
silver  originally  discovered  by  the  Spaniards. 

THE   FIFTH   ROUTE. 

A  fifth  route  has  just  been  developed,  and  a  concession  granted  therefor,  called  the 
International  Argentine  and  Bolivian  Railway,  to  run  from  Buenos  Ayres  to  some 
point  near  Corrientes,  thence  to  Oran,  near  the  Bolivian  frontier.  This  route  pre- 
sumes that  the  railway  connections  between  Buenos  Ayres  and  Corrientes  will  soon 
be  completed,  a  distance  of  about  700  miles ;  Corrientes  to  Oran,  465  miles  ;  Oran  to 
Bolivian  frontier, 96  miles;  Bolivian  frontier  to  La  Paz,  550  miles  ;  La  Paz  to  Bogota, 
1,880  miles;  total,  3,691  miles;  deducting  700  miles  presumed  to  be  built  from  Buenos 
Ayres  to  Corrientes,  and  about  365  miles  of  connections  between  La  Paz  and  Bo- 
gota already  built,  leaves  still  to  be  constructed  2,626  miles. 

It  will  be  observed  that  these  five  routes  have  been  treated  as  international  routes  * 
between  Buenos  Ayres  and  Bogota.     By  this  we  do  not  mean  to  say  that  they  are 
intended  by  the  projectors  as  such,  but  are  described  because  they  all  tend  in  that 
direction,  and,  as  far  as  they  go,  will,  or  might  be,  a  part  of  that  great  international 
highway,  thus  leaving  so  much  the  less  to  be  constructed. 

It  will  also  be  seen  that  of  the  five  proposed  routes  between  the  two  cities  there 
remains  to  be  built  as  follows:  Route  from  Buenos  Ayres  via  Jujuy  and  La  Paz, 
2,070  miles;  Buenos  Ayres  via  Asuncion  (Paraguay),  La  Paz,  Sucre,  etc.,  2,515  miles ; 
Buenos  Ayres,  connecting  with  the  Clark  South  American  Railway  near  Asuncion, 
across  the  Gran  Chaco,  to  Salinas,  Sucre,  La  Paz,  etc.,  3,225  miles;  Buenos  Ayres  to 
San  Felipe,  thence  along  the  Andes  to  Coquimbo,  Lima,  etc.,  2,120  miles  ;  Buenos 
Ayres  via  Corrientes,  Oran.  La  Paz,  etc.,  2,626  miles.  There  are  other  routes  pro- 
jected, for  which  concessions  have  been  granted,  all  tending  toward  Bogota  ;  but  the 
five  already  described  are  the  principal. 

AID   FROM   SOUTH   AMERICAN   GOVERNMENTS. 

As  above  stated,  every  encouragement,  both  material  and  moral,  will  be  given  to 
^the  construction  of  this  interuational  road  by  the  different  republics  through  which 


14  TRADE  AND  TRANSPORTATION  BETWEEN 

it  will  pass.  The  material  aid,  vrhicli  is  the  most  important,  may  be  approximated 
by  the  general  rule  in  this  regard  adopted  by  the  Argentine  Republic  and  other  South 
American  states — that  is,  a  guaranty  of  from  5  to  7  per  cent,  per  annum  on  all  sums 
invested  in  construction,  and  a  most  liberal  grant  of  lands  along  the  road. 

The  lino  throughout  its  entire  length  would  pass  through  countries  teeming  with 
the  most  valuable  articles  of  commerce,  such  as  coflee,  cacao,  quinine,  sugar,  man- 
dioca,  vanilla,  tobacco,  botanical,  medical,  and  dye-stuflfs,  and  timber  and  wood  of 
the  most  valuable  sorts. 

From  time  immemorial  these  countries  have  been  regarded  as  the  land  of  gold, 
silver,  and  other  precious  metals,  and  also  copper,  lead,  bismuth,  salt,  nitrate  of  soda, 
magnesia,  etc. 

The  hitherto  unexplored  regions  of  Bolivia  were  supposed  to  be  especially  rich  in 
deposits  of  gold  and  silver,  and  recent  discoveries  show  that  the  fabled  land  of  the 
followers  of  Cabot,  supposed  to  be  somewhere  in  Bolivia,  where  "  mighty  griffins" 
watched  like  "incarnate  death"  over  "  caves  of  gold  and  diamonds,"  has  not  been  so 
grossly  exaggerated,  but  that,  stripped  of  all  poetry,  immense  mines  and  deposits  of 
the  precious  metals  do  exist  in  that  country,  though  too  remote  from  highway  and 
habitation  to  be  explored  or  worked. 

THE  EL  DORADO  OP  THE  ANCIENTS. 

In  the  report  of  the  Director  of  the  Mint  for  1884  it  is  stated,  upon  information 
from  the  United  States  minister  to  Bolivia,  that  Chili,  Bolivia,  and  Peru,  under  ad- 
vantageous circumstances,  would  "  add  50,000,000  ounces  of  silver  to  the  world's  use 
annually."  "  The  basin  of  the  Cerro  Pasco,  in  Peru,  of  2  miles  in  length  by  1  in  width, 
is  so  prolific  of  silver  that,  without  going  deeper  than  280  feet,  over  $'200,000,000 
have  have  been  extracted."  ''Every  spade  that  turns  the  clod  reveals  the  silver." 
Indeed,  the  South  American  Journal  and  kindred  papers  are  filled  with  accounts 
of  the  mines  and  deposits  of  the  precious  metals  from  the  Argentine  Republic  to  Colom- 
bia; and  when  it  is  remembered  that  few,  if  any,  of  these  republics  have  mints,  but 
export  their  gold  to  be  coined,  it  can  be  easily  imagined  what  this  would  amount  to 
in  the  way  of  freight. 

The  great  diamond  fields  of  the  world  are  also  along  these  routes  or  in  proximity 
thereto. 

Even  Colombia,  not  heretofore  regarded  as  so  abundant  in  these  metals  as  Peru, 
Bolivia,  etc.,  seems,  from  recent  accounts,  to  bo  rich  in  mines  and  di'posits.  Mr. 
Charles  Dunlop,  writing  in  this  regard  in  August  last,  says,  among  other  things,  that 
"the  immense  value  and  extent  of  the  mineral  resources  of  Colombia  are  not  a  mere 
matter  of  conjecture  ;  their  reality  lias  long  since  been  established  on  the  basis  of  ex- 
perience. *  *  *  Of  all  fields  for  mining  enterprise  there  are  few  equal  to  this 
hitherto  little  known  region." 

Independent  of  gold  and  silver,  diamond  and  emerald,  however,  the  legitimate  in- 
ternal conmierce  of  the  states  through  which  this  international  road  would  directly 
l)ass,  and  the  adjacent  country  drained  thereby,  amounts,  under  the  unfavorable  con- 
ditions now  attached  to  it,  to  over  $600,000,000  per  annum.  What  would  it  not, 
amount  to  when  stimulated  and  developed  by  this  proposed  international  line  f 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


15 


n. 


WHAT  IS  SENT  TO  LATIN  AMERICA. 


Very  few  people  have  any  idea  of  tbc  infinite  variety  of  the  manufact- 
ured merchandise  sent  to  Central  and  South  America.  Coi)ies  of  mani- 
fests have  been  furnished  me  by  the  managers  of  several  of  the  steam  ship 
companies,  which  show  each  article  included  in  the  cargoes  of  their 
ships,  and  from  them  the  following  list  has  been  made  up  : 


Agricultural  implements. 

Asbestos. 

Anise  seed. 

Advertising  matter. 

Axle  grease. 

Apples. 

Air  guns. 

Asliphalt. 

Alcohol. 

Acetate  of  lime. 

Acid. 

Arms. 

Ammonia. 

Ash. 

Art  leather. 

Almonds. 

Aniline  dyes. 

Butter, 

Blacking. 

Bread. 

Bellows. 

Books. 

Bacon. 

Beans. 

Belting. 

Beer. 

Bicycles. 

Batteries. 

Baby  cabs. 

Brass. 

Bottles. 

Burial  cases. 

Bustles. 

Bronzes. 

Brass  goods. 

Beeswax. 

Britannia  ware. 

Belt  laces. 

Buttons. 

Bags. 

Brushes. 

Brimstone. 

Blocks. 


Bitters. 

Broom-corn. 

Barrows. 

Bells. 

Beef. 

Bran. 

Billiard  cloth. 

Bungs. 

Billiard  tables. 

Boilers. 

Bark. 

Billiard  strips. 

Borax. 

Billiard  goods. 

Bath-bricks. 

Bath-tubs. 

Cartridges. 

Cotton  goods. 

Cheese. 

Crucibles. 

Cumin  seed. 

Canned  goods. 

Cattle. 

Coffee. 

Clocks. 

Cocoa. 

Candles. 

Cutlery. 

Corks. 

Copper  goods. 

Corn. 

Car  material 

Cartridge  shells. 

Cement. 

Combs. 

Car  wheels. 

Chalk. 

Carriages. 

Codfish. 

Caviare. 

Cane  chairs. 

Cane. 

Cotton. 


Cards. 

Cuspadores. 

Canary  seed. 

Carbons. 

Coloring. 

Cars. 

Cyclostyles. 

Cigar-maker's  boards. 

Cod  sounds. 

Candy. 

Caustic  potash. 

Caustic  soda. 

Corsets. 

Carriage  material. 

China. 

Cages. 

Crayons. 

Cassia. 

Corn  meal. 

Chvomos. 

Cloves. 

Cordage, 

Clay. 

Clothing. 

Collars. 

Corn  flour. 

Cotton-seed  hulls. 

Cigarettes. 

Corn  starch. 

Castors. 

Celluloid  goods. 

Cinnamon. 

Dates. 

Dental  goods. 

Dried  fish. 

Drugs. 

Dry  goods. 

Domestics. 

Druggists'  ware. 

Dried  fruit. 

Dyes. 

Dental  engine. 

Dye-stuffs. 


16 


TRADE    AND    TRANSPORTATION    liKTWKEN 


Emery  cloth. 

Extract  Idi^wood. 

Euaiiiele<l  doth. 

Enanuled  duck. 

Etifjiuos. 

Electric  light  material. 

Essential  oils. 

Eye-glasses. 

Emi>ty  shells. 

Fiiruiture. 

Flour. 

Feather  dusters. 

Fliut. 

Feed. 

Feathers. 

Fire-arms. 

Fans. 

Figs. 

Fish-plates. 

Fish. 

Fancy  goods. 

Fire-crackers. 

Fuse. 

Frames. 

Fishing-lines. 

Fruit-presses. 

Felt. 

Fancy  cards. 

Furs. 

Files. 

Fish-oil. 

Glassware. 

Gelatine. 

Glue. 

Groceries. 

Garlic. 

Grapes. 

Grease. 

Grindstones. 

Gas-fixtures. 

Glass  tubes. 

Gum  Senegal. 

Galvanized  goods. 

Gums. 

Gr  i  ndstone-fixtures. 

Handcarts. 

Hardware. 

Hams. 

Hops. 

Hats. 

Hogsheads,  empty. 

Hose. 

Hoops. 

Hay. 

Household  goods. 

Handles. 

Hides. 

Heading. 

Harness. 

Horn  tips. 

Hog  iiair. 

Hemp. 

Hectograjjhs. 

Iron,  manufactured. 

Ink. 

Iron  bars. 

Incuimtors. 

Ice-cream  freezers. 

Iron  safes. 

Xroo  tubes. 


Igniting-tai>e3. 

India-rubber. 

.lewelry. 

.Jute. 

.Jai)anned  ware. 

Kalsouiiue. 

Lamp  goods. 

Lamp-ware. 

Lard. 

Lard-oil. 

Lumber. 

Leather. 

Lime. 

Linseed-oil. 

Locomotive  springs. 

Leather  belting. 

Lightning-rods. 

Lead-pencils. 

Liibricating-oil. 

Lathe. 

Locomotives. 

Labels. 

Leather  bags. 

Machinery. 

Mats. 

Maizena. 

Manufactured  wood. 

Mattresses. 

Manufactured  tobacco. 

Matches. 

Marble-dust. 

Music. 

Manufactured  hair. 

Manufactured  zinc. 

Mast-hoops. 

Manufactured  copper. 

Matting. 

Minerals. 

Mucilage. 

Match-splints. 

Molds. 

Mineral  water. 

Metallic  shells. 

Machine-oil. 

Mexican  silver. 

Mince-meat. 

Millstones. 

Malt. 

Manufactured  marble. 

Notions. 

Nails. 

Nuts. 

Newspapers. 

Needles. 

Oat«. 

Onions. 

Oakum. 

Orguinettcs. 

Oii-cloth. 

Oars. 

Oil-cake. 

Oatmeal. 

Olive-oil. 

Oak. 

Organs. 

Olives. 

Paint. 

Photographer's  material. 

Paper. 

Petroleum. 


Plaster. 

Primed  shells. 

Plated  ware. 

Pumps. 

Porcelain  bowls. 

Pumice  stone. 

Packing. 

Pork. 

Peas. 

Pimento. 

Pictures. 

Pickled  fish. 

Perfumery. 

Pitch. 

Pepper. 

Potatoes. 

Pencils. 

Patent  leather. 

Post-ofhce  lock-boxes. 

Paper  caps. 

Paper  boards. 

Paper  fashions. 

Pop- corn. 

Porcelain  ware. 

Percussion  caps. 

Pins. 

Printing  material. 

Pianos. 

Pickles. 

Paraffine  oil. 

Parafline  wax. 

Printing  types. 

Paper  hangings. 

Rosin. 

Railroad  material 

Rosin  oil. 

Revolvers. 

Rubber  belts. 

Railroad  cars. 

Raisins. 

Rivets. 

Railroad  spikes. 

Refrigerators. 

Rice. 

Spikes. 

Sausages. 

Syringes. 

S.  board. 

S.  M.oil. 

Stationery. 

Shoes. 

Shooks  and  heads. 

Scales. 

Sugar. 

Sandpaper. 

Sowing  machines. 

Soup  paste. 

S.  cane  spreaders. 

Straw  board. 

Surgical  instruments. 

Shafts. 

Stove  [tolish. 

Staples. 

Saw  teeth. 

Salad  dressing. 

Slates. 

Sperm  oil. 

Silverw.are. 

Saddlery. 

Specie. 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


17 


Silex. 

Snuflf. 

SoiisHors. 

Siliciito  of  soda. 

Starch. 

S.  lighters. 

Skins. 

Spirits  of  turpentine. 

Sewing-machine  needles. 

Shoe  laces. 

Saws. 

Steel  rails. 

Sand. 

Shot. 

Soap-grease. 

Shade  fixtures. 

S.  nails. 

S.  trucks. 

Sulphur. 

S.  M.  parts. 

Sponges. 

Straw  goods. 

Scieutilic  instruments. 

Sickles, 

Sabers. 

Salves. 

Shell-primers. 

Sarsaparilla. 

Shawl-straps. 

Stearic  acid. 


Sheet-iron. 

Straw  covers. 

Toys. 

Trunks. 

Tools. 

Telegraph  material. 

Trucks. 

Tin. 

Tar. 

Tobacco. 

Toothpicks. 

Tacks. 

Tinware. 

Toiletware. 

Tea. 

Tinfoil. 

Tallow. 

Toilet  sets. 

Typewriters. 

Tongues. 

T.  hoops. 

Tarpaulin. 

Tiles. 

Telephones. 

Thread. 

Tags. 

Tallow  scraps. 

Twine. 

Tent  material. 


Tin-plate. 

Varnish. 

Vegetables. 

Velocipedes. 

Valises. 

Wood  ware. 

Wood,  manufactured. 

Wick. 

Windmills. 

Whalebone. 

Wax. 

Waste. 

Wads. 

Wood  sticks. 

Wire. 

Whiting. 

Wheat. 

Window  glass. 

Whips. 

Wheels. 

Walnut. 

Wine. 

Wheelbarrows. 

Watches. 

Wall  paper. 

Whitewood. 

Water-wheels. 

Yellow  metal. 

Zinc. 


WHERE  THE  ARTICLES  COME  FROM. 

These  articles  are  contributed  by  nearly  every  one  of  our  States. 
Thus  not  only  the  merchants  and  manufacturers  of  the  sea-board  cities 
are  interested  in  the  extension  of  this  commerce,  but  every  producer  in 
the  Central  and  Western  States  as  well.  Not  long  ago  the  Brazilian 
Mail  Steamship  Company  traced  to  its  source  every  article  that  com- 
posed the  cargo  carried  by  its  steam-ships  to  Brazil,  and  the  following 
statement  shows  the  share  of  each  State,  in  the  freights  on  one  south- 
ward voyage  of  the  Finance : 


states. 

Per  cent. 

States. 

Per  cent. 

States. 

Per  cent. 

0.05 
3.00 
0.28 
8.52 
5.31 
0.23 
0.28 
2. 75 
0.27 

0.28 
10.07 
4. 33 
2.21 
3.12 
0.41 
8.24 
28.56 
1.75 

19.  Peunsylv.ania  ... 

20.  Nortli  Carolina.. 

21.  South  Oaroliua.. 

22.  Kliodc  Island.... 

23.  Vermont 

11  35 

2.  Couni'ctiiiit 

3.  Dolawiire 

11.  Mas.sacLusetta 

12.  Mis.soiiri 

13.  Michigan 

0.45 
0.45 
0.70 

1-1.  Minnoaota 

0.87 

6.  Iowa 

0.05 

7.  Imliiina. 

16.  New  Jersey 

17.  Kew  York 

18.  Ohio 

25.  "Wisconsin 

0.47 

8.  Kansas 

100.  00 

S.  Ex.  5i- 


18 


TRADE    AND    TKANISI'OKTATION    BETWEEN 
ANOTHER  CABGO. 


The  followiug  statemeut  shows  the  share  of  each  State  in  another 
cargo  that  was  carried  to  Brazil  by  the  Finance  : 


states. 

Per  cent. 

States. 

Per  cent. 

States. 

Per  cent. 

0.05 
7.00 
0.05 
11.40 
2.00 
0.40 
0.25 
0.25 
0.25 

10.  Micbigan 

11.  Massachusetts  ... 

12.  Minnesota 

3.00 
14  00 
0.90 
1.85 
0.10 
0.60 
4.75 
25.75 
2.00 

19.  Oregon 

0.05 

20.  Pennsylvania 

21.  Rhode  Island 

22   South  Carolina  .. 
23.  Vermont 

20.25 

2.10 

0.65 

0.10 

15.  Noit h  Carolira 

16.  New  .lersey 

17.  New  York 

18.  Ohio 

0.50 

25.  Wisconsin 

1.75 

-100.  00 

THE   CARGO   OF   THE  ALLIANCE. 


The  following  statement  shows  the  proportion  contributed  by  each 
State  to  the  total  value  of  the  cargo  of  the  steam-ship  Alliance,  which 
sailed  from  New  York  for  Brazil  on  April  2  last : 


States. 

Value. 

'            States. 

Value. 

States. 

Value. 

New  York 

$74,  546.  00 
96.00 
20,  908.  00 
19,  331.  47 
17,054.40 
43,  065.  00 
11,874.00 
11,332.00 
9,  096.  00 
7, 190.  00 
6,  230.  00 
6, 035. 00 
5,  773.  00 

$5,  096.  00 
4,  020. 00 
3, 732. 00 
3,  704.  54 
2,  765.  00 
2,  668.  00 
2,  647. 00 
2,  359.  00 
2,  056.  00 
2,111.00 
1,  800.  00 
1, 183. 00 
1, 150. 00 

$807.  00 

Vermont ■ 

Rhode  Island 

South  Carolina 

Kentucky 

Wisconsin 

587.00 
781.00 

576.  00 

239.  00 

Dakota 

220.  00 

North  Carolina 

Texas  

162.  00 

125.  00 

56.00 

40.00 

Ohio 

Total 

New  Hampshire 

301,417.41 

From  the  above  statement  it  appears  that  thirty-six  States  and  Ter- 
ritories participated  in  the  shipment  of  goods  to  Brazil  by  a  single 
steamer,  and  that  cargo  was  a  type  of  others  that  are  sent  regularly. 
These  goods  come  from  the  South  and  Western  Territories,  from  Texas 
and  from  Maine,  from  Delaware  and  Minnesota,  from  Dakota  as  well  as 
Connecticut. 

THE  ARTICLES   CONTRIBUTED   BY  EACH  STATE. 

I  have  before  me  the  manifest  of  the  cargo  carried  by  the  steamer 
Finance  upon  a  recent  voyage  to  Brazil,  each  article  of  wliich  has  been 
traced  to  its  source.  It  is  impossible  within  the  limits  of  this  paper  to 
give  a  complete  copy  of  the  invoice,  but  the  following  sample  shipments 
will  show  the  character  of  the  goods  composing  the  cargo,  and  the  States 
from  which  they  come : 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


19 


SUtes. 

Articles. 

States. 

Articles. 

California 

2  casks  of  wine. 

Maine 

15  packages  cod-liver  oiL 
70  boxes  canned  fish. 

Connecticut 

P  cases  of  cif;arH. 

1  box  trunk  loclis. 

Maryland 

20  cases  canned  tomatoes. 

10  caBCM  of  kitclicn  lianlware. 

195  cases  lard. 

1  l)un(lIo  tubs. 

Massachusetts.. 

1  bale  blue  domestics. 

50  cascts  of  axes. 

2  cases  ot  silver  philed  ware. 

53  packagoa  clocks. 

7  cases  metiiUie.  cartridges. 

1  case  straw  goods. 

35  cases  j)rintinK  ink. 

22  cases  axes. 

Michigan 

10  cases  of  furniture. 

Dulinvare 

59  packages  car  material. 
20  Dales  brown  drills. 

6  crates  of  oars. 

Georgia 

1,500   packages   white   pine 

42  cases  of  priut  drills. 

shingles. 

44  bales  cof  ton  domestics. 

Minnesota 

410  barrels  flour. 

80  cases  blue  drills. 

North  Carolina  . 

980  barrels  rosin. 

1  barrel  sewinguiacbiue  oil. 

20  barrels  spirits  tur})cutine. 

60  cases  sbeetiugs. 

New  Jersey 

219  cases  sewing  machines. 

1  package  samples. 

1,  000  boxes  beans. 

10  cases  pin  cbecks. 

New  York 

9  barrels  kero.seno  oil. 

30  bales  gray  sheeting. 

2  cases  of  i)unip8. 

20  bales  duck. 

49  packages  stoves. 

Illiuois 

32  cases  corn  shellers. 

32  trunks. 

I  case  velocipedes. 

1  case  rowing  machines. 

9  bundles  wheel  plows. 

30  cases  perlumery. 

1  bundle  meatcnttbrs. 

Ohio 

200  boxes  of  maizena. 

12  crates  stoves. 

1  keg  oat-meal. 

5  barrels  pork. 

2  cases  cheese. 

1 7    cases  agricultural  imple- 

18 packages  lamps. 

ments. 

10  cases  house-turnishiug goods. 

4  cases  harrows. 

Pennsylvania... 

7  cases  railroad  brakes. 

Iowa 

5  cases  plows. 
18  coils  wire. 

70  barrels  kerosene  oil. 

8  cases  lamp  chimneys. 

7  kegs  staples. 

2  cases  rubber  car-springs. 

90  reels  barbed  wire. 

Rhode  Island  . . . 

4  cases  hardware. 

4  bundles  fleece  dew. 

South  Carolina  . 

20  cases  turpentine. 

79  kegs  nails. 

Vermont 

2  cases  of  prints. 

1  case  wire  stretchers. 

Virginia 

5  bales  of  t«bacco. 

2  cases  butts. 

2  cases  smoking  tobacco. 

Louisiana 

5  bales  gray  cotton. 

40  barrels  flour. 

39  barreis  pickled  fish. 
53  boxes  dried  fish. 

75  barrels  maize  flour. 

20  barrels  rye  flour. 

And  so  on,  the  goods  being  contributed  by  nearly  every  State.  It  is 
noticeable  in  this  invoice  that  most  of  the  cottons  come  from  Georgia, 
most  of  the  flour  from  Minnesota,  most  of  the  barbed  wire  from  Iowa, 
most  of  the  agricultural  implements  from  Illinois,  and  most  of  the  sew- 
ing machines  from  New  Jersey. 

CAKGO   OF   STEAMER  ALLIANCA. 

From  the  invoice  of  the  cargo  of  the  steamer  Alianca  the  following 
notes  are  taken : 


SUtes. 

Articles. 

states. 

Articles. 

1  case  dancing  cloth. 
1  crate  stump  pullers. 

1,260  cases  blue  drills. 

20  cases  white  drills. 

California 

6  cases  salmon. 

100  cases  cotton  goods. 

6  cases  lobsters. 
26  cases  oysters. 

5  crates  corn  shellers. 

63  packages  plow  castings. 

Dakota 

50  bags  oats. 
30  bales  hay. 

41  cases  hardware. 
300  cases  lard. 

Connecticut 

24  cases  sowing  machines 

80  cases  wheel  barrows. 

20  cases  silver-plated  ware 

50  Ciises  agricultural  im  p  1 

e- 

1  case  paper  fasteners. 

meuts. 

1  case  seU-inking  pads. 
1  case  gold  penholders. 

Indiana 

10  crates  refrigerators. 

1  box  locks. 

27  cases  clocks. 

87  cases  household  utensils. 

Delaware  

5  bundles  pump  fixtures. 

7  cases  carpenter's  tools. 

4  packages  brooms. 

Iowa 

70  boxes  axes. 

Florida 

2  eases  photographic  gooda.    - 

1  case  cut  tacks. 

20 


TRADE    AND    TRANSPORTATION    IJETWEEN 


■ '^nr 

"■•T      ■     ■*  ■        '■'' 

'=  — 

States. 

Article. 

States. 

Article. 

Iowa -. 

1  case  hardware. 

New  Hampshire 

C  cases  phiid  drills. 

45  Ciise.s  l)leaclied  sheetings. 

1  case  blotting  paper. 

Kentucky  

3  casi's  bic.ycli's. 

11  eases  bhu<  llanrels. 

4  casi'8  medicine.' 

New  Jersey 

10  eases  preserved  butter. 

8  packages  perfumery. 

2:i0  cases  medicines. 

80  coils  wire. 

2  packages  patent  medicine. 

1  horse  (Prince  Wilkes). 

New  York 

l.l  portable  forges. 

16  barrels  wire  tacks. 

Missouri 

10  packages  fans. 

1  package  oencils. 

10  packages  pencils. 

Kansas 

8  corn  shellers. 

1  package  locks. 
6  cases  woodworking  machin- 
ery. 

30  cases  plows. 
20  feed  cutters 

Ohio 

Louisiana 

15  boxes  Sapolio. 

10  cases  wooden  ladders. 

.")  cases  colored  cloth. 

30  sewing  niachiaes. 

10  boxes  axes. 

12  cases  com  shellers. 

Maine  ..--.. 

53  cases  shrimps. 

16  cases  blue  sheetings. 

1.957  pieces  white  pine. 

4  cases  pumps. 

772  pieces  wbito  pine. 

15   packages    horse-car    trim- 

Oregon  

Penn.sylvania... 

12  cases  cod-liver  oil. 

mings. 

Maryland 

30  barrels  lard. 

Rhode  Island  . . . 

68  cases  edged  tools. 

150  tierces  lard. 

10  ca.sos  iudia-rubbor  goods. 

2  packages  engraving  paper. 

1  case  silver-plated  ware. 

500  cases  lard'. 

North  Carolina. 

361  barrels  rosin. 

2  cases  shoes. 

25  cases  gray  cotton. 

20  packages  biscuits. 

Tennessee 

6  cases  slippers. 

Massachusetts... 

4  barrels  beans. 

2  cases  pictures. 

6  cases  blue  drillings. 

4  packages  druggists'  sundries. 

Michigan 

21  cases  household  goods. 

3  packages  medicine. 

24  packages  medicine. 

Texas  

8  packages  agricultural  imple- 

20 packages  furniture. 

ments. 

Minnesota 

1  case  builders'  hardware. 

1  case  photo-cotton. 

10  ( ases  sandpaper. 

Virginia 

25  cases  manufactured  tobacco. 

3  cases  crayons. 

1  hogshead  loaf  tobacco. 

700  barrels  tlour. 

30  baiTcls  corn  flour. 

Mississippi 

1,344  bundles  staves. 

Wisconsin 

21  cases  scales. 

490  bundles  hoops. 

370  bundles  staves. 

10  bundles  potato  flour. 

12  cases  carpenters'  tools. 

Nebraska 

1  box  notions. 

2  cases  builders'  hardware. 

These  cargoes  were  not  selected,  but  were  taken  at  random,  and  at- 
tempts were  made,  which  were  successful  in  nearly  every  case,  to  discover 
the  origin  of  each  article.  The  result  which  is  given  above  shows  very 
clearly  that  every  one  of  the  Western  and  Central  States,  as  well  as 
those  of  New  York  and  New  England,  have  a  local  interest  in  the  de- 
velopmeut  of  our  trade  with  Brazil.  The  Southern  States,  particularly 
Georgia,  which  is  just  now  commencing  to  develop  some  mechanical 
industries,  have  a  great  deal  at  stake  in  this  movement  to  secure  en- 
larged markets.  The  cotton  goods  produced  at  the  mills  of  Georgia 
and  the  other  States  of  the  South  are  especially  adapted  to  the  trade 
of  South  America,  and  the  slightest  effort  only  is  necessary  to  build  it 
up  to  a  profitable  magnitude. 


THE    UNITED    STATES    AND    LATIN    AMERTC'A.  21 


III. 

HISTORY  OF  THE  INTERNATIONAL  CONGRESS. 


There  have  been  two  attempts  to  hold  an  International  American 
Congress.  In  1825,  during^  the  administration  of  John  Quincy  Adams, 
General  Bolivar,  who  was  then  President  of  the  United  States  of  Colom- 
bia, invited  the  several  American  nations  to  join  in  a  congress  to  be 
held  at  Panama  in  Jnne,  182G. 

President  Adams  accepted  the  invitation,  and  nominated  Richard  C. 
Anderson  and  John  Sargent  as  delegates  on  the  part  of  the  United 
States,  and  William  B.  Kochester  as  secretary  to  the  mission.  The 
message  containing  the  nominations  was  referred  to  the  Committeee  on 
Foreign  Eelations  of  the  Senate,  by  whom  a  report  was  made  on  the 
IGth  of  June,  182G,  condemning  the  mission, and  concluding  with  a  res- 
olution declaring  it  inexpedient  for  the  United  States  to  join  the  pro- 
l)osed  congress. 

The  report  was  rejected  by  the  Senate,  and  on  the  14th  of  March,  182G, 
the  recoramedations  of  the  President  were  adopted  by  a  vote  of  24  to 
10.  On  the  2Lst  of  April  the  House  of  Representatives,  by  a  vote  of 
133  to  Gl,  passed  a  bill  making  appropriations  for  the  mission. 

Orders  were  transmitted  to  Mr.  Anderson,  who  was  then  minister  to 
Colombia,  to  attend  the  congress,  but  on  his  way  to  Panama  he  died 
of  a  malignant  fever.  His  colleague,  Mr.  Sargent,  found  it  impossible 
to  attend  the  congress,  and  thus  the  United  States  was  not  represented. 

The  congress  was  held,  however,  on  Juue  22,  182G,  and  continued  in 
session  until  July,  concluding  a  treaty  of  friendship  widi  all  the  Ameri- 
can powers  who  had  been  invited  tojoin. 

The  congress  adjourned  to  meet  in  February,  1827,  at  Tacubaya,  a 
suburb  of  the  city  of  Mexico.  Mr.  Poinsett,  United  States  minister  to 
Mexico,  was  appointed  commissioner  to  this  congress  in  place  of  Mr. 
Anderson  (deceased),  and  Mr.  Sargent,  his  colleague,  went  to  Mexico, 
but  the  congress  did  not  assemble,  owing  to  disturbing  revolutions  in 
nearly  all  the  countries  invited  tojoin. 

In  1881,  as  will  be  remembered,  Mr.  Blaine  sent  invitations  to  the' 
Spanish  nations  to  meet  the  United  States  in  a  similar  congress,  and 
they  were  generally  accepted,  but,  subsequent  to  the  retirement  of  Mr. 
Blaine  from  the  Cabinet,  the  enterprise  was  abandoned  to  be  renewed 


^2  TRADE    AND    TRANSPORTATIOX    BETWEEN 

by  Air.  Freliiigihuyseu,  his  suGce.ssor  in  office,  through  the  South  Anier- 
icau  Commission. 

THE   SOUTH   AMERICAN   COMMISSION. 

The  first  serious  attention  given  by  the  Government  of  the  United 
States  to  the  condition  of  our  longitudinal  trade  was  in  1884,  when  the 
Congress  passed  an  act  authorizing  the  President  to  appoint  a  com- 
mission ''  to  ascertain  and  report  upon  the  best  modes  of  securing  more 
intimate  international  and  commercial  relations  between  the  United 
States  and  the  several  countries  of  Central  and  South  America." 

This  commission,  before  leaving  the  United  States,  held  public  con- 
ferences with  the  merchants  of  Boston,  Baltimore,  Philadelphia,  New 
York,  New  Orleans,  and  San  Francisco,  and  then  proceeded  to  visit  the 
several  capital  cities  and  commercial  centers  of  Central  and  South 
America.  It  was  instructed  by  the  Department  of  State  to  confer  with 
the  proper  officials  of  each  of  the  governments  to  which  it  was  accredited 
concerning  the  advisability  of  calling  such  an  International  American 
Congress  as  is  to  assemble  on  the  2nd  of  October  next,  and,  wherever  it 
found  a  disposition  to  favor  such  a  gathering,  to  invite  suggestions  as  to 
topics  to  be  discussed. 

At  its  official  conferences  with  all  of  the  governments  visited,  with  a 
single  exception,  the  commission  was  honored  with  the  presence  of  the 
chief  executive  and  his  entire  cabinet.  This  exception  occurred  in  Costa 
Eica,  and  was  due  to  the  fact  that  the  late  General  Hernandez,  then 
President,  was  lying  upon  his  death  bed.  The  Primero  Designado,  or 
first  vice  president,  however,  appeared  as  his  representative,  with  full 
powers. 

AN  INTERNATIONAL   CONGRESS  INDORSED. 

It  should  be  said,  also,  that  all  of  the  Governments  visited  cordially 
indorsed  the  proposition  for  an  international  conference,  with  the  ex- 
ception of  Chili,  where  the  President  announced  that  the  subject  would 
be  held  under  advisement.  The  act  of  Congress,  approved  May  24, 
1888,  under  which  a  call  was  issued,  includes  a  list  of  topics  suggested 
or  assented  to  by  all  of  the  Governments  except  Chili.  The  only  topic 
which  had  the  entire  approval  of  that  Government  was  the  sixth,  which 
relates  to  the  adoption  of  a  common  silver  coin.  This  proposition  met 
the  decided  api)robation  of  the  President  of  Chili  and  his  entire  cabinet, 
and  there  was  a  unanimous  expression  of  opinion  that  such  a  coin 
would  be  of  immense  advantage  to  all  silver-producing  States  and 
greatly  facilitate  commerce,  which  is  embarrassed  by  the  lack  of  a  uni- 
form standard  of  value. 

RESULTS  OF  THE  INVESTIGATION. 

The  report  of  the  Commission  having  been  made  to  the  Congress  of 
the  United  States,  bills  were  introduced  in  botli  Houses  to  carry  out 


THE    UNITED    STATER    AND    LATIN    AMERICA.  ^ci 

its  recommendations,  passing  the  Senate  nnanimously,  and  the  IToiiae 
with  veiy  little  opposition. 

The  Commission,  also,  in  obedience,  to  its  instructions  "  to  ascer- 
tain the  best  methods  of  promoting  commercial  relations  between  the 
United  States  and  the  several  countries  of  Central  and  South  America," 
invited  conferences  with  the  importing  merchants  and  other  business 
men  at  all  of  the  principal  ports  and  commercial  centers  of  the  coun- 
tries it  visited,  and  from  them  gained  much  information  and  many  sug- 
gestions of  great  value  to  the  merchants  and  manufacturers  of  the 
United  States.  It  is  a  matter  of  profound  gratification  that,  with  the 
reports  of  the  Commission,  public  interest  in  the  extension  of  our  trade 
with  Central  and  South  America  was  revived  and  stimulated,  and 
greatly  increased  exportations  to  those  continents  have  been  the  result. 

The  Commission  in  its  investigations,  which  were  continued  for 
about  fourteen  months,  ascertained  and  reported  to  Congress  that  the 
obstacles  in  the  way  of  increased  commercial  relations  between  the 
United  States  and  the  several  countries  of  Central  and  South  America 
were: 

OBSTACLES  IN  THE   WAY   OF  TRADE. 

(1)  The  failure  of  the  manufacturers  and  merchants  of  this  country 
to  understand  and  comply  with  the  peculiar  requirements  of  the  trade, 
both  in  the  production  of  merchandise  suitable  to  the  markets  and  in 
the  preparation  and  packing  of  such  merchandise  for  shipment. 

(2)  The  failure  of  the  manufacturers  and  merchants  of  the  United 
States  to  extend  to  their  customers  in  Central  and  South  America  the 
credits  allowed  them  by  European  houses. 

(3)  The  lack  of  banking  facilities  which  makes  it  necessary  to  trans- 
act all  commercial  business  through  the  banks  of  London,  and  the  pay- 
ment of  exorbitant  rates  of  interest  and  exchange. 

(4)  The  infringement  of  the  patents  and  the  forgery  of  trademarks  of 
the  American  manufacturers,  and  the  manufacture  in  Europe  of  bogus 
and  inferior  imitations  of  American  merchandise  for  the  purpose  of  de- 
ceiving the  people. 

(5)  The  lack  of  a  common  system  of  weights  and  measures,  and  a  uni- 
form standard  of  value. 

(6)  The  enormous,  and  in  many  cases  almost  i>rohibitory,  duties 
cbarged  upon  imported  merchandise  by  most  of  the  countries  of  Cen- 
tral and  South  America,  which,  so  far  as  they  relate  to  the  peculiar 
products  of  the  United  States,  might  be  removed  or  considerably  re- 
duced by  arranging  for  reciprocal  concessions,  and  under  instructions 
from  the  Department  of  State  the  Commission  initiated  the  negotiation 
of  treaties  to  this  end  with  several  of  the  Governments  it  visited. 

(7)  The  complex,  and  in  many  cases  unreasonable,  regulations  of  the 
customs  service  in  many  of  the  ports  of  Central  and  South  America, 
the  practice  of  imposing  exorbitant  fines  and  penalties  for  uuinten- 


24  TRADE  AND  TRANSPORTATION  HETWEEN 

tioiial  violations  of  such  re«;ulations,  and  tlic  lack  of  a  nniforni  and  just 
method  of  appraising  the  value  of  goods  iini)0ited  at  these  ports. 

LACK   OF   TRANSPORTATION   THE  FUNDAMENTAL   OBSTACLE. 

There  were  several  other  minor  obstacles  discovered  and  reported 
upon,  but  the  chief  and  fundamental  reason  for  our  lack  of  trade  in  the 
Americau  hemisphere  was  found  to  be  the  absence  of  facilities  for  rapid 
and  regular  communication  and  transportation,  which  is  due  to  the 
failure  of  the  Government  of  the  United  States  to  aiford  the  same  en- 
couragement and  assistance  to  American  steam-ship  lines  that  are  en- 
joyed by  their  European  rivals. 

It  was  the  conclusion  of  the  Commission,  based  upon  the  current  tes- 
timony of  several  hundreds  of  merchants  engaged  in  business  upon  the 
three  continents,  that  it  is  impracticable  to  attempt  to  extend  our  trade 
in  Central  and  South  x\merica  as  long  as  the  transportation  fiicilities 
are  under  the  control  of  our  rivals,  and  the  few  steam-shii)  lines  between 
New  York  and  the  Latin-American  ports  are  compelled  to  compete  with 
the  heavily  subsidized  vessels  of  England,  France,  Germany,  Italy,  Hol- 
land, and  Spain. 

The  difference  in  the  cost  of  maintaining  and  navigating  steam-ships 
under  the  flag  of  the  United  States  is  so  great  that  our  vessel- owners 
are  compelled  to  charge  higher  rates  of  transportation  than  competing 
foreign  lines  or  abandon  the  trade  entirely.  Every  American  steam-ship 
that  visits  a  port  in  Central  and  South  America  is  required  to  enter  into 
direct  competition  with  rivals  that  are  not  only  able  to  maintain  them- 
selves at  from  .'50  to  50  per  cent,  less  cost,  but  receive  generous  subsidies 
from  the  treasuries  of  the  nations  whose  flags  they  carry,  to  guarantee 
them  against  loss,  and  in  many  instances  it  is  cheaper  to  ship  merchan- 
dise from  the  ports  of  the  United  States  via  Europe,  upon  European 
steamers,  than  to  send  them  direct  upon  American  steamers.  Single 
comi)eting  foreign  vessels  in  many  cases  receive  for  every  voyage  twice 
and  even  four  times  as  much  compensation  for  carrying  the  mails  as  the 
entire  fleet  of  an  Americau  company  is  paid  for  the  whole  year. 

That  the  expansion  of  our  trade  under  similar  advantages  to  those 
enjoyed  by  our  Euro])ean  rivals  was  not  only  possible  but  natural  was 
the  irresistible  conclusion  of  the  Commission,  and  it  was  based  n])on  the 
unanimous  testimony  of  every  merchant  with  whom  it  conferred.  That 
we  can  sell  at  least  as  much  as  we  buy  in  Latin  America,  if  not  a  much 
larger  amount,  was  clearly  demonstrated,  and  the  desire  of  the  people 
of  the  countries  visited  for  closer  and  enlarged  commercial  relations 
with  the  United  States  was  manifested  in  an  unmistakable  manner. 

THE  COMMERCE  OF  1888. 

Theexports  of  the  Latin  American  nations,  as  has  been  stated,  amount 
to  about  $50(1,000,000  annuaUy,  ami  of  them  the  United  States  in  1888 


THE    IINITKD    STATES    AND    LATIN    AMERICA.  25 

purchased  $1  SI, 000,000;  En^Hand,  $01,000,000;  France,  ${»0,000,000;  and 
Germany,  $30,000,000.  Our  imports  consisted  of  coftee,  $52,000,000  ; 
sugar,  $SO,000,000;  tobacco,  $18,000,000 ;  rubber,  $12,000,000;  hides, 
$11,000,000;  ihix,  jute,  and  hemp,  $5,000,000;  drugs,  dyes,  and  chemi- 
cals, $4,000,000 ;  wool,  $2,500,000,  and  fruits,  $2,500,000. 

During  the  same  year  Enghmd  exported  to  Latin  America  manufact- 
ured merchandise  to  the  value  of  $116,000,000;  France,  $75,000,000, 
and  the  United  States,  $71,000,000. 

In  Mexico*  and  Central  America  we  sold  goods  to  the  value  of 
$14,300,000,  and  purchased  goods  to  the  value  of  $25,100,000.  In 
South  America  we  sold  $20,000,000  and  bought  $85,000,000.  In  the 
West  Indies  we  sold  $27,000,000  and  bought  $71,000,000. 

Of  our  purchases  in  all  Spanish  America  $97,853,000  were  brought 
in  foreign  vessels,  and  $77,370,000  in  American  vessels.  Of  our  sales 
$28,000,000  (and  this  statement  embraces  only  such  merchandise  as  is 
carried  by  sea)  were  sent  in  foreign  vessels,  and  $40,000,000  in  Ameri- 
can vessels. 

ANALYSIS   OF   THE   CARRYING  TRADE. 

An  analysis  of  the  carrying  trade  between  the  United  States  and 
Latin  America  is  very  interesting.  With  Mexico,  the  West  Indies, 
Central  America,  Venezuela,  and  Brazil  we  have  direct  steam-shi]>  com- 
munication. 

Of  our  exports  to  Mexico  $5,100,000  were  sent  in  American  vessels, 
while  only  $1,849,000  were  sent  in  foreign  vessels.  Of  our  imports 
from  Mexico  $6,007,000  were  brought  in  American  and  $4,832,000  in 
foreign  vessels. 

Of  our  exports  to  Central  America  $3,027,000  were  sent  in  American 
vessels,  and  $1,504,000  in  foreign  vessels.  Of  our  imi)orts  from  Central 
America  $4,947,000  were  brought  in  American  and  $2,859,000  in  foreign 
vessels. 

Of  our  exports  to  the  West  Indies  $15,049,000  were  sent  in  American 
and  $12,219,000  in  foreign  vessels,  and  of  our  imports  from  the  West 
Indies  $37,015,000  were  brought  in  American  and  $34,550,000  in  foreign. 
But  ten  millions  and  a  half  of  our  imports  from  the  British  West  Indies 
came  in  English,  while  only  $2,082,000  came  in  American  vessels.   • 

Of  our  imports  from  Brazil  $10,000,000  came  in  American  and  $43,000,- 
000  in  foreign  vessels. 

Of  our  imports  from  Venezuela  $9,384,000  came  in  American  ?nd  only 
$007,000  in  foreign  vessels,  and  of  our  exports  $2,035,000  were  sent  in 
American  and  only  $402,000  in  foreign  vessels. 

Of  our  entire  imports  from  South  America  $28,745,000  came  in  Amer- 
ican and  $55,010,000  in  foreign  vessels,  and  of  our  shipments  thithtr 
$16,432,000  were  sent  in  American  and  $13,147,000  in  foreign  vessels. 

*  The  statistics  of  our  trade  wltb  Mexico  are  very  defective. 


2G 


TRADE    AND    TRANSPORTATION    BET  WREN 
AN   INCREASE   IN  OUR   TRADE. 


There  has  been  some  increase  in  our  commerce  with  Latin  America 
within  the  last  twenty  years,  notwithstanding  the  disadvantages  und-  r 
which  our  merchants  have  labored,  even  if  it  has  not  kept  up  with  our 
national  development  in  other  directions,  as  the  following  comparative 
table  for  18G8  and  1888  will  show  : 


CJonntries. 


Mexico 


Central    American    States 
and  British  Honduras  — 

THE  WK6T  INDIES. 

Onba 

British  West  Indies 

Porto  Rico 

Hayti 

San  Domingo 

FreDch  W^est  Indies 

Dutch  West  Indies 

Danish  West  Indies 

Swedish  West  Indies 

Total 

SOUTH  AMERICA. 

Brazil 

United  States  of  Colombia. . 

Venezuela    

Argentine  Republic    

Pnignay 

Chi.i 

British  Guiana 

Peru  

Dutch  Guiana 

1  tench  Guiana 

All  other  South  America  . .. 

Total 

Grand  total 


Exports. 


1868. 


Dollars. 
6, 441,  339 


646, 347 


14,  675, 697 
6,  742,  381 

2,  547,  536 

3,  247,  500 

66,  201 

913, 121 

507,  832 

1, 170,  996 

29,  699 


1888. 


Dollars. 
9,  897,  772 


4,  592, 080 


10,  053,  560 

7,611,533 

1,  909,  618 

4,  617, 125 

817,707 

1, 603,  827 

583,  593 

612, 139 


29,  900,  963  j  27, 869, 102 


5,  695,  104 
3, 711, 796 

901,  262 
2,  732,  600 

821, 006 
1,  ,580,  999 
1,945,568 
1,  606,  355 

465,  523 

36,  986 

8,264 


19, 625,  763 
56, 614, 412 


7, 137, 

5,  023, 
3,  038, 

6,  643, 

1 ,  459, 

2,  433, 
1,717, 

870, 
26(i, 
146, 
843, 


29,  579,  227 


71,  938, 181 


Imports. 


1868. 


Dollarg. 
1,  590,  667 


1,  271, 351 


49,  774, 704 

2,765,116 

6,  345,  639 

753,  866 

83,  363 

218,  953 

289,  5-3 

573,  004 

2,136 


1888. 


Dollars. 
17,  329,  889 


7,807,013 


49,  319,  087 

12,  550,  940 

4,412.483 

2,  918,  8i;0 

1,  459.  392 

116,890 

388, 834 

399,  220 


Total  imports  and  ex- 
ports. 


Dollars. 
8, 632,  006 


1,  917,  698 


64,  450, 401 

9,  507,  497 

8,  893. 175 

4,001,366 

149,  564 

1,132,074 

797,  405 

1,  744,  OOU 

31,  835 


1888. 


Dollars. 
27,  227,  661 


12, 399, 093 


59, 372,  647 
20,162,473 

6,  382,  101 

7,  535,  945 
2,  277,  099 
1,  720,  717 

972,  427 
1,011,359 


60,806,354     71,565,666     90,707,317 


23,  595,  740 

2,  538,  297 

2,  368,  977 

4,  806,  299 

1, 179,  520 

951,  767 

2,  364,  082 

1, 765,  397 

422,  581 

15, 477 

2.366 


40,  Oil,  103 


103, 679,  475 


53,  710,  234 

4,  393, 258 
10,  051,  250 

5,  902, 159 
2,  711,  521 
2,  894,  520 
2,  822,  382 

309,  040 

430,  983 

12,  424 

1, 118. 627 


84,  356,  398 


181, 058,  966 


29,291,144 

6,  250, 093 

3,  330,  239 

7,  538,  899 
2,  000,  526 

2,  532.  706 

4,  31",  250 

3,  431,  752 
888, 104 

52,  463 
10,  630 


99,  434, 708 


60  847,  242 
9,417,138 
13,  089,  765 
12,  545,  712 
4,  170,853 
6,  327,  741 
4,539,793 
1,  179,211 
697,  228 
159.  181 
1,  961,  761 


THE    UNITED    STATF.R    AND    LATIN    AMERICA.  27 

GRKAT  BKITAIN,   FRANCE,    AND   THE   UNITED   STATES   COMPARED. 

Tbe.  following?  statement  shows  the  character  of  tbe  principal  articles 
of  merchandise  purchased  by  the  people  of  Central  and  South  America, 
and  the  sources  from  which  they  come : 


Articles. 


From  the 
United  States. 


From  Great 
Britain. 


From  France. 


Agricultnral  implements* 

Bread-stuffs 

Candles 

Carriages,  carts,  and  horse-cars.. 
Chemicals,  drugs,  and  dves 

Coal ; 

Cotton  goods 

£artben  and  china  ware    

Fancy  artices 

Fish 

Flax  and  hemp,  manufactures  of. 
Gunpowder  and  other  explosives. 
India  rubber,  manufactures  of... 

Iron  and  steel 

Jewelry,  gold  and  silver 

Leather  goods 

Live  animals 

Musical  instruments 

!MaIt  liquors 

Oils 

Paints 

Paper  and  stationery 

Provisions  and  dairy  products  . . . 

SOk  goods 

Soap 

Spirits,  distilled 

Suirar  refined  

Tobacco  manufactures  of 

Watches   

Weai-ing  apparel 

Wines 

Woods,  manufactures  of 

Woolen  goods 


$1,  0,")5, 000 

7,  363,  000 

64,000 

703,  000 

1,417,000 

793,  000 

4,  548,  000 
213,  000 

337. 000 
444,  000 
785,  000 
479,  000 

94,000 

7,  509,  OUO 

127,  000 

1,  507,  000 
454,  000 

38,  000 
251,  000 

2,  204,  UOO 

62,  000 
633,  (00 

5,  695,  (00 

35,  000 
165,  000 

84,000 
397,  000 

281. 1  00 
6,000 


93,  000 

6,  720,  000 

89,000 


$197,  000 
1,469,000 
1,181,000 
4,  005,  000 
4«,  48.''),  000 
1,  450, 000 


6,  511,  000 


456,  000 
21, 774,  000 


1,  7G>:,  000 
730, 000 


306, 000 


762,  000 
564, 000 
252,  000 
292, 000 
15,  000 


1,615,000 
'9,' 995,' 656' 


$32,  000 

41,000 

1,391,000 

318,  000 
4,  202,  000 

841.000 
3, 269.  Ol>0 

386,  000 


125, 000 


2,  349, 000 
1,  317, 000 
5, 168,  000 


38,  000 

1,  369,  000 

1, 401, 000 

525,  000 


878,  000 
1,  419, 000 


6,000 

5,  7.">8,  000 

11,689,000 

920, 000 

7,  894,  000 


Note.— The  returns  from  Great  Britain  and  France  are  for  the  calendar  year  of  1888,  and  from  the 
United  States  for  the  fiscal  year  ending  June  30,  1889. 

Germany  exported  fancy  articles  to  the  amount  of  $1,857 ;  iron  and 
steel,  $1,322,000;  chemicals,  drugs,  and  dyes,  $355,000;  leather  goods, 
$484,000 ;  silk  goods,  $274,000 ;  wearing  apparel,  $273,000,  and  woolen 
goods,  $1,304,000. 

Spain  exported  breadstuffs  to  the  amount  of  $1,500,000  ;  cotton  manu- 
factures, $2,101,000;  fancy  articles,  $55,000;  leather  goods,  $2,923,000; 
paper  and  stationery,  $739,000 ;  soaps,  $885,000,  and  wine,  $8,264,000. 

THE  OPINION   OF  AN  EXPERT. 


Mr.  William  H.  T.  Hughes,  of  New  York,  who  is  one  of  the  best  in- 
formed as  well  as  one  of  the  most  enterprising  men  engaged  in  the  Span- 
ish-American trade,  says : 

My  whole  scheme  rests  upon  the  fundamental  facts  that  onr  merchants  and  manu- 
facturers, and  especially  the  latter,  desire  to  enlarge  the  outlet  for  the  products  of 
their  factories  in  the  foreign  markets ;  that  they  have  that  desire  because  they  are 
already  produciug  in  excess  of  the  requirements  of  the  home  markets  ;  and,  more- 
over, that  they  are  willing  and  ready  to  take  such  steps  as  may  lead  them  to  the  at- 
tainment of  that  object.     Do  not  statistics  and  trade  reports  show  that,  with  very 


28  TRADE    AND    TRANSPORTATION    BETWEEN 

rare  exceptions,  oar  producers  are  eitlii^r  carrying  a  larger  stock  of  their  goods  tbaa 
is  needed  to  supply  the  domestic  markets  or  running  their  establishments  on  short 
lime  in  order  to  avoid  a  glut?  Again,  do  we  not  hear  from  all  the  great  industrial 
centers  of  the  country  clear  and  unmistakable  voiced  expressive  of  the  want  of  wider 
markets  in  order  to  enable  the  manufacturers  to  employ  to  their  fullest  extent  the 
great  producing  forces  at  their  command.  Does  not  this  show  that  they  are  not  satis- 
lied  ?     Undoubtedly,  because  it  does  not  pay  them  to  run  on  short  time. 

It  may,  however,  he  urged  that  these  are  mere  general  statements.  So  they  are, 
and  I  offer  them  as  such.  It  is  not  difticult  to  supply  evidence  in  support  of  their  cor- 
rectness. Any  one  wishing  to  ascertain  the  truth  they  contain  can  easily  do  .so  by 
devoting  a  little  time  to  examination  of  sundry  publications  representing  each  branch 
of  trade.     In  a  short  article  of  this  kind  I  can  not  enter  into  details. 

Now,  taking  for  granted  that  we  do  want  that  foreign  trade,  the  next  question  in 
order  is,  how  to  get  it.  As  a  practical  business  man,  and  heing  unfamiliar  with  the 
fine  and  delicate  doctrines  of  political  economy,  in  attempting  to  answer  the  question 
I  had  necessarily  to  be  guided  by  what  my  ob.servations  and  experience  have  taught 
me.  Whether  these  have  enabled  me  to  suggest  such  means  as  will  preserve  me  from 
the  danger  of  running  against  snags,  of  course  I  can  not  say.  I  hope,  however,  that 
there  will  be  ample  time  for  counsel  and  advice  when  the  snag  does  appear,  ami 
even  for  compromise  among  the  commanders  of  our  fleet,  such  as  may  enable  us 
safely  to  navigate  and  avoid  the  peril  of  nliipwreck.  I  therefore  had  no  hesitation  in 
stating  such  means  as  I  considered  most  conducive  to  the  attainment  of  the  object  in 
view. 
They  were  plainly  and  simply  the  following  : 

First.  To  admit  free  the  raw  material  needed  by  our  manufacturers  produced  in 
countries  .south  of  us  that  are  willing  to  admit  our  products  and  manufactures  free 
in  return  ;  or,  in  other  words,  to  make  a  fair  trade  with  any  country  that  is  will- 
ing to  give  us  a  fair  trade  in  return. 
Second.  To  establish  frequent,  regular,  and  cheap  steam  communication. 
Third.  To  establish  banking  facilities. 

Now,  as  to  steam  communication,  it  is  a  saying  as  trite  as  it  is  true  that  commerce 
always  follows  the  flag.  Now,  then,  if  we  want  foreign  trade  we  must  have  steamers 
flying  our  colors,  and  they  must  be  as  good  as  those  of  our  European  competitors. 
Can  we  have  them  without  Government  aid — in  plain  terms,  without  subsidies? 
Everybody  familiar  with  the  subject  knows  that  we  can  not  compete  with  the  Euro- 
peans, not  a.s  it  is  commonly  supposed,  because  it  costs  us  more  to  build  the  ships  or 
to  run  them.  No ;  that  is  not  the  main  difficulty.  The  true,  real  difficulty  lies  in  that 
the  European  lines  are  subsidized. 

I  do  not  know  whether  this  is  protection  or  free  trade.  I  simply  know  that  it  is 
the  fact,  and  I  am  to-day  running  American  steamships  in  competition  with  a  line 
subsidized  by  the  Spanish  Government,  and  unless  our  steamship  lines  are  placed  on 
the  same  footing  competition  is  out  of  the  question.  Why  can  not  our  Government 
adopt  the  same  policy  pursued  by  the  English,  the  French,  and  the  Germans,  and 
subsidize  such  steamers  as  may  be  built  in  conformity  with  the  requirements  neces- 
sary to  turn  them  into  commerce  destroyers  in  case  of  emergency?  Would  not  this 
be  a  more  economical  policy  than  the  building  and  maintaining  of  a  large  fleet  of 
special  cruisers? 

In  regard  to  banking  .facilities,  I  can  now  say  that  since  presenting  my  plan  to  the 
Business  Men's  Republican  Association  I  have  been  informed  by  gentlemen  fully 
competent  and  able  to  carry  out  the  project  that  if  the  required  steam-ship  lines  are 
established  they  would,  without  any  Government  guaranty,  take  charge  of  founding 
such  banking  institutions  as  may  be  needed,  thus  doing  away  with  the  necessity  of 
Government  support. 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


29 


IV. 


THE  COMMEPyCE  OF  MEXICO. 


The  statistics  of  our  trade  with  Mexico  are  very  defective,  and  repre- 
stutonly  the  amount  carried  on  by  water.  There  is  a  large  amount  of 
merchandise  shipped  annually  across  the  border  by  the  several  railroads 
which  can  not  be  included  because  there  is  no  law  authorizing  the  col- 
lection of  statistics  concerning  transportation  in  cars. 

But  the  total  annual  commerce  of  the  country  amounts  to  about  sev- 
enty million  dollars,  of  which  forty  millions  are  exports  and  thirty 
millions  are  imports.  The  United  States  is  the  largest  purchaser  of 
Mexican  products  and  the  largest  contributor  to  her  imports,  az  the 
following  statement  of  the  trade  of  1888  will  show  : — 

EXPORTS  FROM  MEXICO. 


Articles. 


Chemicals,  drugs,  and  dyes 

CoflV^e ■ 

Copper  <iro ■ 

Flax.  hemp,  jute,  and  other  vegetable  sub- 


To  the 
United 

States, 
1888. 


sta 


Hides  and  skins 

Honej' 

Silvciore 

Sugar 

Tobacco,  and  maunfactures  of: 

Leaf 

Maunlactureaof 

Wood,  aud  manufactures  of  ... . 

A 11  other  articles 


Total. 


.$1,268,554 

2,  111,  i;w 

10,  929 

5, 239,  432 
1.  562,  008 

(a) 
4,  803,  667 

14,  653 

7,278 

13,  029 

.539,  007 

1,  760,  202 


17,  329,  889 


To  Great 
Britain, 

1887. 


$418,  036 
1,796 


277,  751 


251, 180 
99,  559 


275,  965 
812,812 
169,  734 


2,  306,  833 


To  France,      To  Ger- 
1887.  many,  1886. 


$90,  418 
329,  626 


$4,  284 
17,  012 


176,  276 


55,948 


37,  474 

81,  488 

676,  871 

91,  962 


12  014 

8,806 


61, 471,  554 


476 

1,190 

262,  752 

9,044 


1, 540,  063     cl,  788, 332 


To 
Spain 

1888. 


$24,256 
18,  602 


23, 144 
57, 14C 


17,404 


140, 552 


The  exports  of  Mexico  are  limited  because  of  the  scarcity  of  labor 
and  capital  to  develop  her  natural  resources.  The  productive  capacity 
of  that  republic  is  unmeasured.  If  the  same  energy-,  industry,  and 
skill  that  has  developed  Kansas,  Nebraska,  Dakota,  and  other  parts  of 
our  great  West  were  directed  to  the  sugar  and  coftee  lands  of  Mexico, 
they  would  produce  enough  to  supply  the  whole  world.  But  now  Mex- 
ico imports  refined  sugar,  and  ships  only  about  $2,500,0U0  worth  of 
coffee  a  year. 

The  Government  is  making  efibrts  to  secure  immigration,  in  order 
that  its  lauds  may  be  tilled.    A  bounty  of  $25  per  capita  is  paid  to 


30 


TfiADl-:    AND    TRANSPORTATION    KETWEEX 


steamship  lines  that  briug  iiiimigrauts,  and  reeently  a  contract  has 
be»n  concludecl  with  an  l!>nglish  company  to  run  steamships  between 
the  Pacific  ports  and  the  Chinese  Emi)ire,  for  the  i)urpose  of  transport- 
ing coolies  to  be  employed  on  the  plantations.  A  treaty  has  been  con- 
cluded with  the  Chinese  Government  under  which  the  immigrants  are 
guaranteed  protection. 

THE  IMPORTS   OF  MEXICO. 

The  imports  of  Mexico  come  mostly  from  the  United  States.  The 
reports  of  the  Bureau  of  Statistics  for  the  year  1888  show  a  total  of 
$9,242,188,  but  this  should  be  increased  by  at  least  six  million  dollars 
in  order  to  cover  shipments  by  railway,  which  would  bring  the  total 
value  of  merchandise  purchased  in  the  United  States  up  to  fifteen 
or  sixteen  millions  of  dollars. 

The  articles  shipped  to  Mexico  are  of  an  almost  infinite  variety  and 
embrace  examples  of  nearly  every  product  of  our  mechanical  industries, 
with  a  considerable  amount  of  breadstuffs,  provisions,  and  raw  cotton. 
The  following  tabular  statement  giving  the  amounts  of  merchandise  im- 
ported by  steamer  from  the  United  States  in  1888,  compared  with  the 
imports  from  Great  Britain  in  1887,  and  from  France,  Germany,  and 
Spain  in  1866,  will  show  the  character  of  the  trade  : 


Articles. 


Agricnltural  implements 

Auimals 

Breadstuflfs 

Candles 

Chemicals,  drugs,  dyes,  and  medicines. 
Coal. 


Colton,  manufacturers  of 

Earthen,  china,  and  glass  ware 

Fancy  articles 

Fish 

Flax,  hemp,  and  juto,  manufactures  of. . . 

Gunpowder  and  other  explosives 

India  rubber  and  gutta-percha,  manufac- 

tures  of 

Instruments  and  apparatus  for  scientific 

purpo.'ies 

Iron  and  steel,  and  manufactures  of.  — 
Jewelry,  and  manufactures  of  gold  and 

and  silver 

Leather,  and  manufactures  of 

Malt  liquors 

Musical  iustniments 

Oils: 

Mineral,  refined 

All  other 

Papei  and  stationery 

Provisions,  comprising  meat  and  dairy 

producta 

Quicksilver 

Silk,  manufactures  of 

Spirits,  distilled , 

Sugar,  refined 

'Jobacco,  leaf 

Watche.s 

Wearing  apparel 

Wine 

W^ood,  and  manufactures  of 

Wool,  manufactures  of 

All  other  articles 


Total. 


From  the 
United 
States. 


$2.i,  365 

427,  296 

345,  048 

21,544 

264,  987 

149,  635 

1,  036, 462 

87, 478 

32,  576 

33,918 

50,  179 

264,  875 

41,413 

67,  970 

1,  94«i,  948 


85,  144 
144,  774 
23,  945 

175,  537 
]')7,  7.'">6 
123,  226 

390,  425 

256.  357 

2,658 

10,648 

58, 123 

92,  581 

4,887 

(a) 

32, 2.55 

1,280,126 

39,543 

1,  569,  509 

9,  242. 188 


From  the 

United 
Kingdom. 


$128,  588 

105,  905 

2.  574,  802 


133, 410 


1,  050,  804 


17,  232 


32,  391 


577,615 
327,  350 


5.  385.  313 


From 
France . 


$17, 137 
225,  677 
318,  067 


106,  250 
422,  241 


149,  382 


316,  990 
359,918 


From 
Germany. 


$160,  650 


185,  402 

17,  850 

138,754 


31,416 


4,284 

41,888 
57,  596 


53,788 


229, 040 


64 
62,  607 
93,  082 


5,  589 
430,  091 
473,  040 


758,  426 
489,  649 

4, 457. 25U 


714 
6,188 


16,660 


17,  136 


6,188 
159,  222 
62,  594 

b960,  330 


From 
Spain. 


$47,  284 


21, 822 


79,  506 


a268,  501 


91,843 
41,814 


63, 953 


317,  024 


112,003 
1,043,810 


THE    UNITED    STATES    AND    J.ATIN    AMERICA.  31 

THE   COTTON   TRADE. 

Mexico  nmimiactures  a  good  deal  of  cotton  and  imports  over  two 
million  dollars'  worth  of  the  raw  material  from  the  United  States  an- 
nnally.  There  are  large  mills  at  Qiieretaro,  that  historic  city  where 
Maximillian  was  captured  and  shot,  and  most  of  the  raw  cotton  reaches 
them  from  Texas  by  way  of  the  Mexican  Central  and  Mexican  National 
liailroads. 

But  our  trade  in  cottons  might  be  very  much  increased  if  the  manu- 
facturers of  the  United  States  would  study  the  peculiar  demands  of  the 
market,  and  comply  with  them.  The  Mexican  people  want  a  cheaper 
grade  of  drillings,  sheetings,  denims,  and  other  fabrics  than  are  called 
for  in  our  domestic  markets,  and  purchase  them  in  England  because 
they  can  not  be  bought  in  the  United  States.  If  our  manufacturers 
desire  this  trade  they  must  send  competent  men  to  Mexico  to  make  a 
careful  study  of  the  whims  and  the  peculiarities  of  the  people.  The 
disposition  of  the  French  and  Germans  is  to  gratify  the  local  taste, 
while  the  manufacturers  of  the  United  States  attempt  to  force  ui)0u  the 
market  goods  that  are  popular  at  home,  but  are  not  suited  to  foreign 
buyers. 

Another  reason  why  our  trade  is  not  larger  is  that  the  commission  men 
are  not  careful  in  filling  orders.  They  will  send  what  they  happen  to 
have  in  stock,  while  the  Mexican  importer  wants  only  what  he  calls  for; 
and  as  a  usual  thing  goods  sent  from  this  country  are  indifferently 
packed.  Nearly  all  the  interior  transportation  of  Mexico  is  done  by 
men  or  mules,  and  packages  have  to -be  arranged  in  bulk  and  weight  so 
as  to  meet  this  requirement.  Another  important  consideration  is  thai 
custom  duties  are  levied  upon  the  gross  weight  of  the  package,  and  the 
importers  do  not  care  to  pay  duty  upon  a  lot  of  heavy  pine  boards  and 
nails,  and  the  waste  that  is  often  put  in  to  fill  up.  All  European  goods 
come  into  the  country  packed  so  as  to  economize  weight,  and  in  a  form 
that  make  them  convenient  for  loading  upon  the  backs  of  mules  or  car- 
gadores,  as  well  as  lessens  the  duty. 

THE  CUSTOMS  REGULATIONS. 

But  the  chief  obstacle  in  the  way  of  an  increased  trade  with  Mexico 
is  the  annoying  and  oppressive  regulations  imposed  at  the  custom- 
houses, particularly  on  the  Eio  Grande,  which  are  intended  to  prevent 
smuggling,  but  practically  prohibit  trade,  as  the  fines  imposed  for  their 
unintentional  violation  eat  up  the  profits  on  the  sales. 

The  attention  of  the  Mexican  Government  has  been  repeatedly  called 
to  these  complaints,  and  promises  have  been  made  of  a  reformation,  but 
very  little  improvement  is  noticed.  President  Diaz,  Minister  Eomero, 
and  other  of&cials  recognize  the  embarrassment  to  trade  in  this  partic- 
ular, but  insist  that  stringent  regulations  are  necessary  to  prevent 
smuggling. 


32  TRADE  AND  TRANSPORTATION  BETWEEN 

Mauy  people  believe  that  the  day  will  come  wheu  there  will  be  no 
custom-houses  on  the  Kio  Grande,  wheu  our  trade  with  Mexico  will  be 
as  free  as  betweeu  the  States  of  the  Union.  The  United  States  can  well 
afford  to  enter  into  a  convention  on  this  basis,  and  the  commercial  treaty 
between  the  two  countries— which,  unfortunately,  has  not  been  carried 
into  effect  because  of  the  failure  of  our  Oougress  to  enact  the  necessary 
legislation — was  a  step  in  that  direction. 

As  far  as  revenue  is  concerned,  the  loss  to  the  United  States  would 
be  a  mere  trifle,  the  total  amount  of  duties  collected  on  goods  imported 
from  IMexico  being  only  about  $500,000  annually.  But  with  Mexico 
the  loss  of  revenue  would  be  a  more  serious  consideration. 

If  cotton  goods  were  admitted  into  Mexico  free  of  duty  the  revenues 
of  the  Government  would  be  curtailed  to  such  an  amount  as  to  make 
such  a  concession  impossible,  as  the  duty  on  them  alone  varies  from 
120  to  ISO  per  cent.,  and  the  amount  collected  reaches  from  $12,000,000 
to  $15,000,000  a  year;  and  the  cotton  mills  of  Mexico  need  the  protec- 
tion of  this  duty  to  exist. 

MEXICAN  SUGAR  AND   COFFEE. 

But  Mexico  could  afford  to  surrender  the  customs  receipts  on  other 
articles  imported  from  the  United  States  as  a  consideration  for  the 
consumption  of  her  sugar  and  coffee  in  this  country.  As  every  one 
familiar  with  the  subject  knows,  the  Mexican  coffee  is  superior  to  that 
produced  in  Brazil,  her  sugar  is  as  good  as  that  of  the  West  Indies, 
and  her  capacity  for  the  production  of  these  articles  is  iiractically  un- 
limited. It  would  be  many  years,  however,  before  her  planters  could 
sui)ply  more  than  a  small  portion  of  the  sugar  and  coffee  required  by 
this  country.  We  consume  about  3,000,000,000  pounds  of  sugar,  while 
Mexico  does  not  now  produce  much  more  than  enough  to  supply  her 
home  demand. 

To  introduce  Mexican  sugar  free  into  this  country,  in  exchange  for  a 
removal  of  her  duties  upon  our  manufactured  merchandise  (except  cot- 
tons), would  stimulate  the  planters  of  that  Republic,  as  it  would  stimu- 
late the  mechanical  industries  of  this.  It  would  increase  our  Hour 
market  in  a  decided  degree,  by  placing  wheat  flour  within  the  reach  of 
the  common  people  of  Mexico  who  are  now  prohibited  from  purchasing 
it  because  of  the  excessive  duty,  and  would  extend  the  sale  of  nearly 
every  article  we  produce  for  exi)ort. 

The  JMexicau  Government  and  the  peoi)le  will  do  anything  in  their 
l)Ower  to  encourage  the  adoption  of  a  common  silver  coin  for  circulation 
through  the  several  American  nations.  The  Mexican  dollar  is  found  in 
great  quantities  throughout  both  continents  south  of  us,  and  at  mauy 
places  is  accepted  as  a  standard  of  value, 


THK    UNITED    STATES    AND    DATIX    AMEmCA. 


3i5 


V. 


THE  COMMERCE  OF  CENTRAL  AMERICA. 


The  foreign  commerce  of  the  five  Central  American  Republics  varies 
from  thirty-six  to  forty  millions  a  year,  the  exports  beings  twenty-one  or 
twenty-two  millions,  and  the  imports  from  fifteen  to  eighteen  millions, 
distributed  as  follows : 


Countries. 


Imports. 


Exports. 


Total. 


Guatemala 

Honduras 

S.an  Salvador 

^NicaTa-ina 

Costa  Kica 

British  Honduras 

Total 


$3,  eoo,  000 

1,500.000 
3,  750,  000 

2,  800,  000 

3.  500,  000 
1, 250,  000 


16, 400, 000 


$6,  750,  000 

1,  600, 000 
6,  000,  000 

2,  800, 000 
3,500,000 
1,  250,  000 


21, 900,  000 


$10,  350.  000 

8,  IdO,  000 

9,  750,  000 
5, 600,  000 
7,  OUO,  000 
2,  500,  000 


38,  300, 000 


The  exports  of  the  Central  American  States  consist  of  coffeCj  reach- 
ing a  value  of  eleven  or  twelve  million  dollars  annually  (more  than  half 
the  entire  quantity),  cocoa,  sugar,  hides,  mahogany  and  other  fine 
woods,  chemicals,  drugs  and  dye-woods,  silver  bullion,  rubber,  and  a 
variety  of  other  products  of  the  soil  and  forest.  In  1888  the  exports 
from  Central  America  to  the  United  States  were  valued  at  $7,023,338; 
to  Great  Britain,  $6,520,833,  and  to  France,  $2,127,054. 

The  imports  of  the  Central  American  countries  are  sent  chiefly  from 
the  United  States,  with  the  exception  of  cotton  goods  in  which  Eng- 
land enjoysalniost  a  monopoly  for  the  same  reasons  mentioned  in  the  pre- 
ceding chapter  as  existing  in  Mexico.  The  cotton  manufacturers  in  the 
United  States  will  not  furnish  the  merchants  engaged  in  trade  with 
Central  and  South  America  the  sorts  of  goods  that  are  demanded  by 
that  market.  Their  fabrics  are  too  good,  are  not  cut  in  proper  lengths, 
and  are  not  economically  packed. 

S.  Ex.  54 3 


34 


TRADE  AND  TRANSPORTATION  BETWEEN 
THE  GREAT  VAREETY  OF  mPORTS. 


The  great  variety  of  articles  entering  into  the  Central  American 
trade  is  shown  by  the  following  table,  in  which  the  trade  of  the  United 
States  and  Great  Britain  in  1888  is  compared : 


Articles. 


Froni 

the  United 

States. 


From  Great 
Britain. 


Breaiistaffs .~.. 

Candles ^ 

Cotton,  manufactures  of , 

Chomicals,  drugs,  dyes,  and  medicines.. 

Earthen,  china,  and  ghissware 

Fancy  articles 

Flax,  hemp,  and  jnte,  manufactures  of 
Fish 


Fruits 

Gunpowder  and  other  explosives. 

Iron  and  steel,  and  manufactures  of 

Jewelry,  and  manufactures  of  gold  and  silver... 

Leather,  and  manufactures  of 

Oils,  vegetable 

Pa]>er  and  stationery 

Provisions,  comprising  meat  and  dairy  producta. 

Silk,  manufactures  of 

Soap. 


Spirits,  distilled 

Sugar,  refined 

"Wearing  apparel 

Wine 

"Wood,  and  manufactures  of  , 

"Wool,  manufactures  of 

All  other  articles ..^... 


Total. 


$821, 318 

14,061 

446,800 

217, 135 

33.114 

40,  '287 

45,  131 
15,  570 
21,  324 

leo,  748 

879,  020 

8,416 

59,  829 

9,414 

54,  611 

265,  873 

3,107 

19,  865 

29,  758 

39,  4.')1 

(6) 

46,  670 
205, 160 

18,  035 
733, 977 


4, 131, 574 


$28,  707 

3, 103,  2«5 

35,311 

17,  826 


131,  517 


676,  906 
"24  391 


37. 112 
14,594 


106,  270 


204,  203 
328, 280 


4,  708, 402 


EECIPROOITY  TREATIES. 

Each  of  the  Central  American  countries  would  willingly  enter  into 
reciprocity  treaties  with  the  United  States  similar  to  that  negotiated 
several  years  ago  with  Mexico,  provided  there  would  be  any  assurance 
of  the  ratification  of  such  treaties  by  our  Congress.  They  would  con- 
sent to  the  free  admission  into  their  ports  of  our  peculiar  products,  such 
as  breadstuflfs,  provisions,  lumber,  furniture,  and  refined  petroleum, 
provided  we  removed  the  duties  of  the  sugar  we  import  from  them. 
The  difference  in  distance,  the  high  rates  of  freight,  and  the  cost  of 
labor  make  it  impossible  for  the  planters  of  Central  America  to  com- 
pete with  those  of  Cuba,  Trinidad,  and  the  Guiana  colonies,  where 
slaves  and  coolies  are  employed,  and  such  a  trade  would  be  regarded 
as  a  welcome  stimulant  to  other  depressed  agricultural  industries. 


PROPOSED  TREATY  WITH  GUATEMALA. 

As  is  the  case  in  nearly  every  other  Spanish-American  country,  the 
exorbitant  duties  charged  upon  flour  and  other  necessaries  of  life  render 
their  consumption  impossible  by  the  great  masses  of  the  people,  and 
ordinary  white  bread  is  as  great  a  luxury  among  them  as  cake  or  wine. 
J)uring  the  recent  visit  of  the  South  American  Commission  to  Guate- 


THE    UXITEI)    STATES    AND    LATIN    AMERICA.  35 

mala  they  held  a  conference  with  the  Government  there,  represented  by 
the  late  President  Barrios,  Mr.  Fernando  Cruz,  his  secretary  of  state, 
and  Mr.  Sanchez,  minister  of  finance,  who  consented  to  enter  into  a 
treaty  under  which  Guatemala  would  admit  free  of  duty  mineral  coal, 
raw  cotton,  refined  petroleum,  wooden  furniture,  flour,  agricultural  im- 
plements, cured  and  preserved  meats,  fruits  and  vegetables,  dressed 
lumber,  woolen  goods  of  all  kinds,  hardware  of  all  kinds,  lime  for  build- 
ing purposes,  tiles  made  of  clay,  salt,  live  stock  of  every  kind,  material 
for  coflee-sacks,  provisions,  lard,  and  such  other  articles  as  enter  into 
the  domestic  economy,  provided  sugar  and  tobacco  from  Guatemala  were 
admitted  free  into  the  United  States. 

These  products  are  not  produced  in  Guatemala  or  any  of  the  other 
States  of  Central  America  to  any  very  considerable  extent,  and  refined 
sugar  is  now  imported  into  Guatemala  from  the  United  States,  little  or 
none  being  manufactured  there.  Were  a  market  opened  in  this  coun- 
try for  the  sugar  of  Central  America  there  would  be  in  a  few  years  an 
immense  development  of  the  sugar  interest  on  that  continent.  The 
cane  grows  vigorously,  and  produces  a  very  large  percentage  of  sac- 
charine matter,  it  being  much  more  profitable  than  other  products  of 
the  five  little  republics.  Before  any  great  amount  of  it  can  be  raised 
for  export,  however,  it  would  be  necessary  to  import  capital  and  labor, 
because  both  are  scarce. 

Whether  the  tobacco  interest  would  be  likely  to  augment  in  the  same 
proportion  is  a  question,  and  it  is  doubtful  whether  the  product  would 
ever  come  in  competition  with  that  of  Havana. 

ENORMOUS  FREIGHT  CHARGES. 

What  is  said  of  Guatemala  will  apply  to  every  other  one  of  the  Cen- 
tral American  States.  The  greatest  obtacles  in  the  way  of  an  increased 
trade  with  Central  America  are  the  enormous  freight  charges,  which 
make  the  cost  of  everything  imported  very  high,  especially  when  the 
duty,  which  is  usually  from  50  to  300  per  cent.,  is  added.  But  there  are 
no  discriminations.  No  matter  where  the  goods  come  from  they  are 
taxed  alike,  and  the  merchants  of  the  United  States  have  no  greater 
advantage  than  those  of  Europe. 

The  lack  of  knowledge  on  the  part  of  our  merchants  and  manufact- 
urers of  the  wants  of  the  market,  and  their  disinclination  to  comply 
with  them,  stands  in  marked  contrast  with  the  assiduity  with  which 
European  merchants  and  manufacturers  cultivate  trade,  and  endeavor 
to  cater  to  the  tastes  and  wants  of  the  people,  and  also  the  favorable 
terms  which  they  are  willing  to  give  purchasers.  The  indillerence  of 
the  merchants  of  the  United  States  in  packing  goods  for  shipment  is 
also  a  great  cause  for  complaint,  and  their  carelessness  is  a  constant 
and  serious  source  of  injury  and  loss  to  the  importer,  and  one  of  which 
their  European  rivals  are  not  guilty. 


36  TRADE    AND    TRANSPORTATION    BETWEEN 

THE  OPINION  OF  AN  EXPERT. 

Mr.  J.  M.  Munoz,  of  New  York,  who  has  been  engaged  in  trade  with 
Central  America  for  the  last  twenty-eight  years,  makes  a  very  valuable 
contribution  to  the  information  gained  from  other  sources  regarding  our 
trade  with  that  continent,  and  says : 

The  exports  from  the  United  States  to  all  the  Central  American  oountriee  consist 
of  natural  products,  such  as  lumber,  flour,  corn  meal,  hog  and  dairy  products,  canned 
meats,  fruits  and  vegetables,  refined  petroleum,  rosin,  pitch,  tar,  and  tuipeutine,  and 
manufactured  tobacco.  There  are  also  imported,  in  greater  or  less  quantities,  manu- 
factured goods,  such  as  sewing-machines,  silver-plated  ware,  glassware  and  crockery, 
watches  and  inferior  jewelry,  paints,  oils,  agricultural  implements,  tools  of  all  kinds, 
drugs,  gunpowder,  trunks,  paper,  mining  machinery,  carriages,  carts  and  harness, 
furniture,  rubber  goods,  barbed  wire,  general  hardware,  boots  and  shoes,  cotton 
prints  and  white  goods,  leather  goods,  railway  cars  and  locomotives,  river  boats,  no- 
tions, etc. 

The  manufactured  goods  and  implements  are  generally  made  in  the  eastern  sea-board 
States — Massachusetts,  Connecticut,  New  York,  Pennsylvania,  New  Jersey,  and  Dela- 
ware ;  and  Maryland,  Virginia,  and  Kentucky  furnish  the  tobacco.  Within  the  last 
few  years  some  of  the  Western  States,  such  as  Ohio,  Missouri,  and  Illinois  have  begun 
to  reach  out  for  the  export  trade  in  such  articles  as  furniture,  carriages,  agricultural 
and  other  implements,  hardware,  canned  goods,  and  meats. 

WHY  OUR  COMMERCE  IS  80  SMALL. 

There  has  been  a  marked  increase  in  our  commerce  with  the  Central  American 
States  within  the  last  twenty  years,  due  principally  to  the  increase  of  population 
and  the  progress  in  material  development  of  those  countries.  Within  that  period, 
nevertheless,  many  lines  of  merchandise  have  fallen  off  in  exports,  principally  manu- 
facti:red  articles,  such  as  agricultural  implements,  tools,  hardware,  furniture,  shoes, 
cotton  fabrics,  paper,  etc.  This  falling  off  can  be  clearly  traced  to  the  cheaper  cost 
of  the  European  manufacturers  of  the  same  class  competing  in  the  same  markets. 
It  is  ondoubtedly  true  that  the  American  products  as  a  rule  are  superior  in  material, 
workmanship,  and  finish,  but  these  very  qualities  which  make  their  superiority  over 
their  European  rivals  increase  their  cost  and  value. 

The  general  fact  stau«ls  out  that  the  American  goods,  as  a  rule,  are  manufactured 
for  use  principally  in  this  country,  where  the  consumer  is  richer,  more  appreciative 
and  exacting  as  to  intrinsic  value,  fine  finish,  and  material,  and  are  made  under  con- 
ditions that  enable  the  manufacturers  to  disregard  foreign  competition  in  catering  to 
the  taste  and  appreciation  in  those  qualities  by  his  principal  cousumers.  But  when 
these  really  superior  articles  and  manufactures  are  otfered  in  the  Sx»auish  American 
markets,  where  the  consumers  as  a  rule  are  poor,  unappreciative  of  their  intrinsic 
superiority,  and  whose  only  desire  and  study  is  to  fill  their  wants  .at  the  most  mod- 
erate cost,  the  competition  off'ered  by  the  same  articles  of  English,  French,  and 
German  make  becomes  irresistible,  and  the  American  article  finds  but  a  limited  con- 
sumption. The  European  manufacturer,  in  his  constant  struggles  with  liis  competi- 
tors for  the  supply  of  consuming  markets,  has  reduced  cheapness  in  materi.al  and 
make  to  a  science,  which  enables  him  to  take  and  hold  the  lion's  share  of  the  trade.  It 
is  true  that  American  genius  and  mechanical  ingenuity  overcomes  in  great  part  the 
cheaper  labor  and  materials  of  the  European  conipetitor,  but  up  to  now  the  conditions 
at  home  are  not  calculated,  in  my  opinion,  to  realize  the  aspirations  to  compete  suc- 
cessfully in  foreign  markets. 

In  connection  with  this  eabject  of  the  increase  in  our  commerce  with  the  Central 


THE    tlNITED    STATER    AND    LATIN    AMERICA.  37 

Aiiierican  States,  I  may  menticii  the  <rijitifyiiif;  fact  that  Costa  Rica  has  so  much  in- 
creased lier  tra<h)  with  this  country  that  the  secretary  of  the  treasury  and  com- 
merce in  his  recently  issued  report  to  Congress  for  last  year  calls  attention  to  this 
remariiahle  increase  in  these  words: 

"I  have  already  in  previous  report  pointed  out  that  the  commerce  of  importation 
with  the  United  States  of  North  America  was  increasing  from  year  to  year.  In  1888 
it  has  exceeded  the  business  done  with  England  in  more  than  $100,000,  and  the  ad- 
vantages which  that  market  offer  to  our  country,  once  direct  communication  is 
established  from  Port  Limon  to  the  interior  (alluding  to  the  completion  of  the  rail- 
road now  being  built),  it  will  cause  a  yearly  increase  in  our  relations  with  the  great 
Kepublic." 

HOW  OUR  IMPORTS  ARE   PAID   FOR. 

During  the  last  six  or  eight  years  the  exports  to  Central  and  Spanish  America  have 
been  paid  for  principally  in  produce  imported  from  those  countries.  Fifteen  or 
twenty  years  ago  the  method  was  different.  Then  our  importations  from  those  coun- 
tries were  comparatively  limited,  and  payment  for  our  exports  were  effected  indrafts 
or  credits  on  London.  At  that  time  drafts  on  the  United  States  were  so  difficult  of 
sale  that  commission  merchants  in  this  country  were  compelled  to  provide  credits  on 
London  houses  to  their  clients  to  pay  for  the  prodrce  shipped  to  this  country  and  the 
balance  of  trade  against  us.  Now  the  greater  part  of  these  covering  operations  are 
made  in  drafts  on  this  country,  and  it  is  even  becoming  of  frequent  occuri-ence  that 
drafts  on  the  United  States  are  sent  by  merchants  direct  from  Central  America  to 
European  houses  in  London,  France,  and  Germany  to  pay  for  goods  in)ported  from 
those  countries.  Europe  undoubtedly  gets  the  benefit  of  the  large  balances  against 
us  in  our  trade  with  Spanish  American  States,  as  she  is  by  far  the  heaviest  customer 
in  supplying  their  needs  as  in  consuming  their  products. 

TRANSPORTATION  FACILITIES. 

The  transportation  between  the  United  States  and  the  countries  mentioned  is 
furnished  both  by  steam  and  sail.  By  steam  are  carried  the  more  valuable  merchan- 
dise; by  sail,  the  cheapest,  such  as  kerosene,  lumber,  pitch,  tar,  ice,  etc.  I  should 
say  the  proportion  carried  in  American  vessels  from  this  country  exceeds  that  carried 
in  foreign  bottoms.  There  are  but  few  "tramps"  in  the  trade,  the  bulk  of  it  being 
carried  by  regular  lines,  English  and  American. 

The  subsidized  foreign  lines  of  steamers  to  ports  of  Central  America,  Venezuela, 
Colombia,  Ecuador,  etc.,  are  the  English  Royal  Mail  Steamship  Company,  the  Pacific 
Steam  Navigation  Company,  the  French  Compagnie  General  Transatlantic,  the  German 
Hamburg  American,  and  the  Spanish  Compania  Transatlantica.  I  have  not  the  data  at 
hand  to  be  precise  in  the  amoxints  of  the  subsidies,  but  they  are  very  heavy,  as  you  are 
doubtless  aware.  There  are  also  other  English  lines,  such  as  the  Atlas  Company, 
that  receive  subsidies  for  carrying  the  mails  from  some  of  the  British  colonies,  notably 
Jamaica.  The  heavy  subsidies  to  these  lines  enable  them  to  carry  the  nu'nhandise 
and  produce  to  and  from  those  States  and  Europe  at  a  much  cheaper  rate  in  propor- 
tion to  distances  than  the  American  lines  can  do  it  for,  to  and  from  our  ports. 

DIFFERENCE   IN   FREIGHT   RATES. 

The  difference  in  the  rates  of  freight  are  about  as  follows  :  The  Royal  Mail  Com- 
pany, the  French  or  German  coni]>anie8,  will  give  through  bills  of  lading  for  coffee  or 
produce  from  any  of  the  Pacific  ports  of  Central  America,  in  connection  with  the 
American  Pacific  Mail,  Central  America  liiies  to  Panama,  and  the  Panama  Railroad 
over  the  Isthmus,  say  a  total  distance  from  the  shipping  to  the  landing  ports  of  be- 
tween 6,900  to  7,100  miles  of  navigation,  for  the  freight  rate  of  £4  10s.  to  £r>  per  ton 


.'i'?^(i9': 


.'')8  TRADE    AND    TRANSPORTATION    BETWEEN 

weight,  sivy  from  $21.80  to  $24.25  of  our  money.  But  when  it  comes  to  shipping  the 
same  article  to  New  York,  a  distance  from  port  to  port  of  only  about  3,000  or  8,500 
miles,  with  the  .same  transfers  to  Aspinwall  by  the  same  carriers,  and  thence  by  the 
Pacific  Mail  steamers  to  Now  York,  the  rates  of  freight  charged  on  the  same  produce 
are  an  average  of  one  cent  to  one  and  a  quarter  cents  per  hundred,  or  at  the  rate  of 
$22  40  to  $2S  per  ton  weight.  About  the  same  proi)ortions  in  the  rates  of  freight  ex- 
ist on  merchandise  shipjjed  from  the  European  ports  to  the  Pacitic  Central  American 
ports,  and  rates  on  merchandise  from  New  York  to  the  same  Central  American  ports. 

CUSTOMS  DUTIES   IN   CENTRAX   AMERICA. 

The  tariff  on  American  staples  in  the  different  Central  and  Spanish  American 
countries  varies  from  50  per  cent,  to  80  per  cent,  ad  valorem,  and  the  duties  collected 
on  imports  constitute  the  principal  source  of  revenue  in  all  of  them.  Outside  of  the 
sugar-growing  countries  it  is  more  than  doubtful  if  the  removal  by  the  United  States 
of  the  duties  on  sugar,  of  which  they  barely  produce  enough  for  their  local  consump- 
tion, wouM  be  to  them  of  any  practical  benefit  whatever,  financially  or  commercially. 
As  the  principal  staple  products  of  those  republics,  such  aa  coflFee,  cocoa,  hides,  skins, 
indigo,  India  rubber,  etc.,  are  duty  free  here,  and  uo  amount  of  reduction  in  the  duties 
npou  sugar  here  would  bo  of  any  advantage  in  stimulating  the  production  of  the 
article  in  those  countries  in  any  very  sensible  degree,  owing  to  adverse  labor  con- 
ditions, I  am  fully  convinced  that  those  governments  would  consider  it  neither 
profitable  nor  desirable  to  enter  into  reciprocity  treaties  with  the  United  States  that 
would  result  in  depriving  them  of  an  imi)ortant  portion  of  their  revenues  without 
any  e(iuivalent  advantage.  Apart  from  these  considerations,  I  am  led  to  believe 
that  the  several  Spanish-American  States  have  treaties  with  Euroiioau  j)(>wers  con- 
taining the  favored-nation  clause,  which  would  render  it  difficult  to  make  any  dis- 
crimination in  favor  of  the  United  States  products. 

COINAGE  KND  CURRENCY. 

I  am  not  jireparod  to  give  any  definite  opinion  as  to  the  practicability  of  the  adop 
tiou  of  a  common  silver  coin,  to  be  a  legal  tender  between  the  United  States  and 
Spanish-American  countries. 

It  is  impossible  for  me  to  say  what  amount  of  paper  money  has  been  issued  in  those 
countries  during  the  last  ten  years.  With  the  exception  of  Colombia  and  Costa  Rica, 
not  much,  if  any,  has  been  issued.  I  believe  as  a  rule  the  interior  indebtedness  of 
those  countries  have  taken  the  shape  of  debentures  or  obligations  bearing  interest, 
not  that  of  treasury  notes,  like  our  greenbacks.  In  Colombia  cousiderablo  issue  of 
inodocmable  i)aper  money,  and  of  a  depreciated  silver  coin  of  500  fineness,  has  been 
resorted  to  by  tho  Government  to  cover  its  necessities.  The  rtssult  in  that  (jountry  has 
been  a  heavy  rise  in  the  i)remium  of  exchange  and  of  gold  and  silver,  amounting  from 
11)0  to  225  })er  cent.  Besides  the  paper  and  spurious  silver  currencies,  that  country 
has  been  further  flooded  by  heavy  issues  of  nickel  small  coins,  all  of  which  has  been 
working  very  serious  evils  upon  the  foreign  commerce  of  tho  country.  Costa  Rica 
has  also,  within  the  last  three  or  four  years,  entered  upon  the  road  of  paper-money 
issues,  through  one  of  its  banks,  but  in  neither  case  could  I  say  what  amount  has 
been  issued. 

In  the  Central  American,  Ecuadorian,  and  Colombian  ports,  the  custom-house  reg- 
nlati(ms  and  methods  of  appraisement  although  exacting,  are  not  usually  embarrass- 
ing nor  unjust  to  the  merchants.  Not  so  with  llie  regulations,  fines,  and  penalties, 
of  tho  Venezuelan  customs  which  are,  many  of  thorn,  arbitrary  and  unjust,  highly 
ond)arraHsing  and  confusing  to  merchants  and  shippers.  It  would  undoubtedly  be 
to  the  advantage  and  relief  of  the  exporters  of  the  United  States  if  some  of  the  most 
unjust  and  objectionable  should  be  modified  and  simplified. 


THE    UNTTKD    STATES    AND    LATTTST    AMERICA. 
SUBSIDIES   PAID   BY   CENTRAL   AMERICA. 


89 


All  of  tbe  Central  American  countries  are  under  contract  to  pay  the 
Pacific  Mail  Steam-ship  Company  of  the  United  States  the  following 
amounts  respectively  for  carrying  the  mails  between  their  ports : 


Coon  tries. 


Coata  Kica 
Nicaragua . 
Honduras  . 
Salvador  .. 
Guatemala 


Per  year. 


$12,000 

6,000 

5,000 

24,  000 

24,000 


40  TRADE  AND  TRANSPORTATION  BETWEEN 


VI. 

THE  COMMERCE  OF  COLOMBIA. 


The  normal  commerce  of  the  Eepublic  of  Colombia  is  about  thirty 
millions  of  dollars,  and  the  exports  and  imports  are  usually  about  equal. 
But  since  work  was  commenced  upon  the  Pauam  a  Canal  there  has  been 
an  enormous  increase  in  the  value  of  merchandise  shipped  both  from 
Europe  and  the  United  States  to  the  port  of  Aspinwall.  This  trade, 
however,  is  but  temporary,  and  the  statistical  reports  for  the  current 
year  will  show  a  large  falling  off. 

The  exports  from  Colombia,  which  vary  annually  from  thirteen  to 
sixteen  millions,  consist  chiefly  of  coffee,  cocoa,  hides,  fruits,  and  nuts, 
rubber  and  chemicals,  drugs  and  dyes.  Most  of  the  cocoa  goes  to  the 
chocolate  manufacturers  of  France,  and  the  same  country  takes  two- 
thirds  of  the  coffee  crop,  the  total  exports  to  that  country  reaching 
nearly  live  million.  We  buy  nearly  two  million  dollars  worth  of  Colom- 
bia's coffee,  and  take  most  of  her  hides  and  skins,  the  total  of  our  im- 
ports reaching  $4,300,000. 

The  exports  to  England  from  that  country  are  comparatively  small, 
averaging  only  about  $1,500,000  annually,  but  the  imports  of  Colombia 
from  England  in  1888  reached  $5,673,000,  and  consisted,  as  is  the  case 
with  Venezuela  and  other  South  American  countries,  chiefly  of  cotton 
goods  ($3,100,992)  whi^h  the  manulacturers  of  the  United  States  might 
sell  there  if  they  would  study  the  markets  and  comply  with  the  tastes  of 
tlu^,  people.  I'^rance  sends  a  large  quantity  of  wearing  ai)parel,  boots 
an<l  shoes,  wines,  woolen  I'abrcs,  and  fancy  articles  ;  her  exports  in  1SS8 
were  nu)re  than  seven  millions,  but  there  will  be  a  serious  falling  otF 
now  that  work  npon  the  Panaina  Cainil  has  been  suspended. 

THE  IVIERCHANDISE   SHIPPED   TO   COLOMBIA. 

A  very  large  variety  of  articles  is  shi])ped  to  Colombia  from  the  United 
States.  The  people  get  all  their  breadstufls  and  j)rovisions  here ;  we 
surpass  both  England,  France,  and  Germany  in  our  exports  of  iron 
and  st(M'l,  and  sell  a  large  (piantity  of  furniture,  for  the  woods  of 
that  country  l)eing  hard  and  heavy  are  not  adapted  eitlier  to  household 
articles  or  to  building  ])urposes.     We  can  supply  nearly  every  article 


THE    UNITED    STATES    AND    LATIN    AJIERICA.  41 

iKHilcd  in  (Joloinbiii  at  prices  quite  as  low  ami  in  quality  equal,  if  not 
sui)eri()r,  to  those  imported  from  England,  and  the  extension  of  our  trade 
in  that  direction  rests  almost  solely  upon  the  enterprise  of  our  mer- 
chants and  the  extension  of  our  transportation  facilities. 

There  is  not  an  article  that  we  import  from  Colombia  taxed  in  our  cus- 
tom-houses. Some  sugar  is  produced  in  the  country,  but  not  for  export, 
and  we  have  little  to  offer  in  exchange  for  a  removal  of  duties  upon  the 
articles  she  imports  from  us.  The  financial  condition  of  the  country 
also  is  such  that  the  Government  could  ill  afford  to  deprive  itself  of 
any  sources  of  revenue.  The  prices  of  all  articles  are  high,  and  the 
Government  is  compelled  to  tax  the  necessaries  of  life  as  well  as  the 
luxuries  to  sustain  itself. 

WHERE  OUR  EXPORTS  COME  FROM. 

The  commodities  taken  by  Colombia  are  so  varied  that  all  sections  of 
our  country  contribute  more  or  less  to  supply  them.  The  provisions 
and  breadstuff's  we  shii)  there  come  from  Illinois,  Indiana,  Iowa,  Mis- 
souri, Kansas,  and  Minnesota;  much  of  the  lumber  from  the  Southern 
States;  the  furniture  from  New  York  and  Michigan;  the  leather  goods 
from  New  England;  the  machinery  from  Pennsylvania  and  Delaware; 
the  tobacco  from  the  Southern  States ;  the  iron  and  steel  from  Penn- 
sylvania, Ohio,  and  Illinois,  and  the  cotton  goods  from  Massachusetts. 

The  trade  with  Colombia  is  done  through  commission  merchants  at 
New  York  with  credit  on  Europe,  principally  on  London,  as  few  of  the 
merchants  of  this  country  have  branch  houses  in  that  country. 

THE  MEANS   OF   TRANSPORTATION. 

The  principal  means  of  transportation  between  New  York  and  the 
ports  of  Colombia  are  furnished  by  the  Pacific  Mail  Steam-ship  Com- 
pany, which  goes  direct  to  Asj)inwall,  and  the  Atlas  Steam-ship  Com- 
])any,  which  sends  steamers  from  New  York  to  all  of  the  Colombian 
ports  by  way  of  Jamaica. 

The  former  is  an  American  and  the  latter  an  English  Company. 
There  is  also  a  steamer  running  between  New  Orleans  and  Colombia, 
and  sailing  vessels  are  occasionally  sent  under  special  charter  with  as- 
sorted cargoes.  Of  the  imports  from  Colombia  last  year,  $1,675,000 
was  sent  in  American  ships,  and  $2,717  in  foreign  ships.  Of  our  ex- 
ports to  that  country  $3,813,000  were  sent  in  American  vessels,  and 
$1,210,000  in  foreign  vessels. 

This  is  the  case  everywhere.  The  raw  materials  of  the  South  Ameri- 
can countries  are  brought  to  the  United  States  In  foreign  shii)s  which 
seldom  carry  cargoes  back,  and  if  we  send  any  merchandise  at  all  we 
must  depend  upon  our  own  vessels  to  carry  it.  The  English  shipmasters 
«lo  everything  in  their  power  to  encourage  the  trade  of  their  own  mer- 
chants.    There  is  one  line  of  steamers  belonging  to  the  Harrison  Com- 


42  TRADE  AND  TRANSrORTATION  BETWEEN 

pany,  of  Liverpool,  wliich  twice  a  month  carries  cargoes  of  English  mer- 
chandise to  the  Columbian  ports  and  there  load  with  raw  materials  for 
!New  Orleans.  From  the  latter  city  they  return  to  Europe  loaded  with 
cotton.  The  freights  from  Europe  are  cheaper  than  from  the  United 
States,  and  the  Atlas  Steam-ship  Company,  having  uo  competitor,  does 
not  fail  to  imi)rove  the  advantage. 

THE  PROPOSED   COMMON  SILVER  COIN. 

With  reference  to  the  adoption  of  a  common  silver  coin,  Mr.  F.  G. 
Pierra,  of  New  York,  who  is  a  merchant  enjoying  a  very  large  trade 
with  Colombia,  says: 

I  believe  that  the  establishment  of  a  common  silver  coin  would  greatly  benefit 
comqiorce  between  the  United  States  and  Spanish  America  aud  Brazil;  but  it  is 
rather  difficult  to  say  how  far  the  measure  is  practicable. 

Judging  by  the  references  to  the  subject  which  I  have  noticed  in  the  public  press 
of  those  countries,  the  measure  does  not  seem  to  be  viewed  with  much  favor,  although 
I  have  not  yet  been  able  fully  to  understand  the  grounds  of  their  objections.  Where 
the  metal  is  produced  to  some  extent,  they  seem  to  be  apprehensive  of  the  cfifect 
which  the  great  production  of  the  United  States  would  have  on  theirs ;  while  some 
observe  that  not  having  ourselves  yet  come  to  an  agreement  in  regard  to  the  silver 
question,  the  discussion  of  a  common  silver  coin  is  somewhat  preuiature.  The  pro- 
duction of  silver  in  Colombia  is  now  about  $2,000,000,  and  is  increasing.  Work  has 
been  commenced  during  the  last  few  months  on  several  mines,  which  it  is  expected 
will  be  very  productive. 

I  am  not  sufficiently  well-informed  to  speak  with  certainty  about  the  coinage  and 
paper  currency  of  that  Republic.  The  matter  seems  to  be  one  somewhat  confused. 
The  monetary  unit  is  the  silver  peso,  900  fine  and  of  .801  ounce  weight,  equivalent  to 
about  70  cents  American  gold.  There  is  besides  a  half  peso,  of  a  very  much  lower 
standard,  which,  I  understand,  is  causing  no  little  confusion  and  trouble. 

The  same  regulations  that  exist  in  other  countries  are  found  in  the 
custom-houses  of  Colombia,  aud  technical  errors  are  punished  with  pen- 
alties out  of  proportion  to  their  importance,  even  where  it  is  evident 
that  no  fraud  was  intended. 

THE   COMMERCE  OP  SAVANTLLA. 

The  principal  port  of  Colombia  is  Savanilla,  which  lies  upon  a  low, 
sandy  bar,  and  is  connected  by  railroad  with  Barranquilla,  the  chief 
commercial  city  of  the  country.  Barranquilla,  is  near  the  mouth  of  the 
river  Magdalena,  the  great  thoroughfare  to  the  interior,  and  to  Bogota, 
the  capital,  and  has  a  population  of  about  25,000,  a  majority  of  whom 
are  foreigners. 

The  exports  from  the  port  of  Savanilla  are  about  $7,000,000,  and  the 
imports  $10,000,000.  The  other  ports  of  the  country,  Carthagena,  Santa 
Marta,  Buenaventura,  Aspinwall  (Colon),  and  Panama,  each  had  its 
share  of  the  commerce  of  the  country,  but  at  Savanilla  most  of  the  busi- 
ness of  the  interior  is  done. 

The  chief  exports  last  year  were :  Silver  and  gold  bullion,  $3,548,533 ; 
cofiee,  $1,470,000;  hides,  $750,572;  tobacco,  $401,900;  cinchona  bark, 
$233,037,  and  rubber,  $179,808.     Of  these  exports  $2,949,225  went  to 


THE    UNITED    STATES    AND    LATIN    AMERICA.  43 

England;   $1,845,201  to  the  United  States;   $883,224  to  France,  and 
$664,329  to  Germany. 

Of  the  imports  ofSavanilla  $2,743,366  came  from  England  ;  $1,356,412 
from  France;  $643,859  from  Germany,  and  $517,386  from  the  United 
States.     The  chief  articles  of  import  last  year  were  as  follows : 

Cotton  goods P,2G5,705 

Provisions 1,218,926 

Iron  and  steel 1,344,812 

Building  materials 1 520,053 

Wines  and  liquors 952,336 

STEAM-SHIP  FACILITIES. 

Savanilla  has  direct  steam  communication  with  New  York  by  the 
Atlas  line,  which,  although  owned  by  an  English  company  and  operated 
under  the  flag  of  Great  Britain,  and  receives  subsidies  from  the  British 
West  India  colonies,  confines  its  voyages  to  American  waters,  and 
touches  at  all  the  chief  Atlantic  ports  of  Colombia  and  Costa  Eica  and 
several  of  the  West  India  Islands,  being  the  rival  of  the  Pacific  Mail 
Company,  and  competing  to  a  certain  extent  with  the  ''  Eed  D  ^  line. 
Where  the  Atlas  steamers  come  into  competition  with  those  sailing 
under  the  United  States  flag  they  are  able  to  give  lower  rates  of  freight, 
because  the  cost  of  maintaining  them  is  lower,  but  to  ports  where  it 
enjoys  a  monoi)oly,  its  charges  are  sufficiently  high  to  make  up  the  dif- 
ference. 

Some  merchandise  is  sent  to  Savanilla  by  the  "  Eed  D  "  line,  by  way 
of  Cura^oa,  where  it  is  transshipped  upon  English,  French,  or  German 
vessels,  the  little  Dutch  island  being  an  important  rendezvous  for  the 
steamers  that  ply  along  the  Spanish  Main. 

SUBSIDIZED  LINES  TO  EUROPE. 

Savanilla  has  four  lines  of  transportation  to  and  from  England,  viz. 
The  Eoyal  Mail  Steam  Packet  line  of  Southampton,  semi-monthly ;  the 
West  India  and  Pacific  line  of  Liverpool,  semi-monthly ;  the  Harrison 
and  West  India  line  of  Liverpool,  semi-monthly ;  and  a  Spanish  line 
which  touches  at  Liverpool  en  route,  also  semi-monthly. 

There  is  also  a  line  of  steamers  between  Savanilla  and  Havre  (the  Com- 
pagnie  G6n^rale  Transatlantique)  tri-monthly ;  a  German  semi-monthly 
line  to  Hamburg,  and  the  line  to  Spain  above  mentioned.  All  of  these 
lines  are  subsidizes. 

This  gives  the  port  of  Savanilla  thirteen  steamers  a  month  to  and 
from  Europe,  or  one  nearly  every  other  day,  while  the  steamers  to  and 
from  New  York  sail  only  once  in  fifteen  days. 

FAULTS  OF  AMERICAN  MANUFACTURERS. 

One  great  obstacle  to  the  extension  of  our  trade  to  Savanilla,  which 
means  the  interior  of  Colombia,  is  the  failure  of  American  manufact- 


44  TRADE  AND  TRANSrORTATION  BETWEEN 

urers  to  appreciate  the  importance  of  packing  their  goods  in  such  a 
manner  as  to  permit  their  transporation  over  the  mountains  upon  the 
backs  of  mules  and  men.  In  Europe  the  packing  of  merchandise  for 
the  South  American  trade  is  a  fine  art,  which  has  never  been  studied 
or  cultivated  in  the  United  States.  Packages  should  be  made  of  a 
certain  size,  and  weight  not  over  125  pounds,  and  there  should  be  as 
little  waste  lumber  and  other  material  as  possible,  so  as  to  add  to  the 
convenience  and  cheapen  the  cost  of  interior  trausporta,tion,  as  well  as 
to  avoid  the  payment  of  unnecessary  duties,  which  are  all  assessed  by 
the  pound,  gross  weight. 

In  Colombia,  roads,  properly  so  called,  do  not  generally  exist,  and  are 
rei)resented  merely  by  mule  tracks.  Military  labor  has,  however,  been 
applied  within  the  last  two  years  to  the  repairing  of  the  principal  routes 
in  the  country,  and  great  improvements  have  been  made.  The  first  road 
suitable  for  vehicles  was  opened  last  year.  It  extends  from  the  Plain 
of  Bogota  to  the  river  Magdalena,  and  will  serve  for  the  conveyance  of 
heavy  goods,  such  as  machinery  and  pianos.  The  postal  service  in  the 
interior  is  well  arranged,  being  safe  and  as  speedy  as  the  conformation 
of  the  country  will  permit.  About  2,800  miles  of  telegraph  are  in  work- 
ing order,  and  about  200  more  in  course  of  construction.  There  are  also 
eight  railway  lines,  which,  however,  extend  no  farther  than  148  miles 
altogether.  Congress  has  approved  of  the  construction  of  a  line  from 
Bogota  to  the  Lower  Magdalena.  Such  a  line  would  shorten  the  time  of 
transit  between  Bogota  and  the  coast  by  three  or  four  days  for  passen- 
gers and  mails,  and  by  about  a  fortnight  for  merchandise.  A  concession, 
which  is  very  important,  has  also  been  granted  to  a  French  company 
for  a  line  of  railroad  from  Bogota  to  the  sources  of  the  Orinoco  Kiver, 
which,  when  completed,  will  give  an  outlet  to  the  Atlantic  Ocean. 

THE   TRADE   OF   THE   ISTHMUS. 

The  trade  of  the  Isthmus  of  Panama  should  not  properly  be  included 
in  that  of  the  Republic  of  Colombia,  although  that  portion  of  the  con- 
tinent is  under  the  political  authority  of  the  Governnient  at  Bogota. 
Aspinwall  and  the  city  of  Panama  are  the  entrepots  for  a  large  amount 
of  comnx'Tce  from  the  west  coast  of  South  America,  and  the  merchan- 
dise that  passes  over  the  Panama  Railroad  daily  is  enormous.  These 
cities  have  a  larger  commerce  than  any  others  in  either  Central  or 
South  America,  but  their  population  is  small,  and  the  imports  on  one 
side  oi'  the  Isthmus  are  immediately  transshipped  on  the  other  side. 

The  Isthmus  being  the  great  thoroughfare  of  commerce,  the  following 
statement  fVom  Mr.  Thomas  Adamsoii,  United  States  consul-general  at 
Panama,  will  be  found  of  especial  interest  as  it  shows  the  number  of 
vessels  employed,  tonnage,  dates  of  arrival  and  departures,  rate  of 
freight  charges,  subsidies  from  foreign  Governments  for  carrying 
mails,  etc. : 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


45 


STEAM-SHIP  FACIUTIES  AT  PANAMA. 

The  three  lines  of  steam-ships  trading  to  Panama  are  "The  Pacific  Mail  Steam-ship 
Company,"  "The  Pacific  Steam  Navigation  Company,"  and  " The  South  American 
Steam-ship  Company." 

The  Pacific  Mail  Steam-ship  Company  maintains  three  lines  on  the  west  coast  of 
North  America,  namely : 

The  San  Francisco  line,  plying  between  San  Francisco  and  Panama,  with  inter- 
mediate calls,  which  consists  of  six  ships,  having  au  aggregate  tonnage  of  10,230  tons, 
makes  two  trips  each  way  monthly,  from  June  to  November,  and  three  trips  each  way 
per  month  during  the  remainder  of  the  year. 

The  Mexican  line  consists  of  two  ships,  having  an  aggregate  tonnage  of  2,450  tons, 
which  ply  between  Panama  and  Acapulco,  making  one  trip  each  way  daring  the 
month. 

The  Central  American  line,  plying  between  Panama  and  the  principal  Pacific  ports 
of  Costa  Rica,  Nicaragua,  Honduras,  Salvador,  and  Guatemala,  consists  of  two  ships 
of  an  aggregate  tonnage  of  3,010  tons,  which  make  two  trips  each  way  per  month. 

The  vessels  of  the  Pacific  Mail  Steam-ship  Company  on  the  Pacific  side  of  this  con- 
tinent make  connections  by  way  of  the  Panama  Railroad  with  the  vessels  of  the  sftme 
company  plying  between  Colon,  on  the  Atlantic  side  of  this  Isthmus,  and  New  York 
City. 

Arrivals  and  departures  of  steamer 8. 


Arrivals  at  Aspinwall. 


Departures  from  A-spinwall. 


Royal  Mail  Steam  Packet  Company's  steamer : 

From    Southampton  via  ^Ve8t  Indies,   fort- 
nightly. 
Compapnio  G6n6rale  Transatlantiqne  steamer: 

From  Marseilles  ard  way  ports,  8th. 

From  Havre,  Bordeaux,  and  way  ports,  18th. 

From  St.-Nazaire  and  way  ports,  3nth. 
Hamburg- American  Packet  Company's  steamer : 

From  Hamburg,  Havre,  etc.,  4th  "and  2l8t. 
Compaiiia  Tran.satlantica  do  Barcelona  steamer  : 

From  Barcelona  and  way  ports,  28th. 
West  India  and  Pacific  Steam-ship  Company's  and 
Harrison  Line  steamers : 

From  Liverpool  and  way  ports,  every  Thurs- 
day. 

Prom  Liverpool  and  Bordeaux,  fortnightly. 


Royal  Mail  Steam  Packet  Company's  steamer : 
For  Plymouth,  Cherbourg,  and  Southampton, 
via  West  Indies,  fortnightly. 
Compagnie  G6n6rale  'Transatlantiqne  steamer : 
For  St.-Xazaire  and  way  ports,  3d. 
For  Marseilles  and  way  ports,  11th. 
For  Havre,  Bordeaux,  and  way  ports,  21  st. 
Hamburg-AmericaQ  Packet  Company's  steamer  : 
For  Hamburg,  Havre,  and  way  ports,  7th  and 
24th. 
Companla  Transatlantica  de  Barcelona  steamer: 

For  Barcelona  and  way  ports,  2d. 
West  India  and  Pacific  Steam-ship  Company's  and 
Harrison  Line  steamers : 
For  Liverpool  via  Xew  Orleans,  every  Satur- 
day. 
For  Liverpool  via  Vera  Cruz  and  New  Orleans, 
fortnightly. 


SUBSIDIES  OR  PAYMENT  FOR  CARRTING  MAILS. 


The  Pacific  Mail  Steam-ship  Company  has  mail  contracts  with  all  of  the  Central 
American  Governments  and  Mexico,  according  to  which  the  company  receives  certain 
stipulated  sums  for  carrying  mails  and  to  secure  the  calling  of  the  steam-ships  at 
their  ports,  etc. 

Costa  Rica  pays  to  the  Pacific  Mail  Steam-ship  Company  $12,000  per  annum  on  mail 
contract;  Nicaragua  pays  to  the  Pacific  Mail  Steam-ship  Company  $8,000  per  annum 
on  mail  contract;  Honduras,  $5,000;  Salvador,  $24,000;  Guatemala,  $19,500;  Mexico, 
$30,000.  Colombia  pays  for  carrying  its  mails  to  New  York  and  San  Francisco  (but 
not  to  intermediate  points)  at  the  rate  of  10  cents  a  pound  for  newspapers,  and  .50 
cents  a  pound  for  letters. 

The  transportation  of  mails  from  Panama  to  Central  America  and  Mexican  ports  is 
included  in  the  contracts  of  those  countries. 

The  Pacific  Steam  Navigation  Company,  of  Liverpool,  England,  employs  in  its 
trade  on  the  west  coast  of  South  America,  between  Panama  and  Port  Monte  Chili,  a 
fleet  of  twenty-seven  vessels,  of  which  seven  have  an  aggregate  tonnage  of  17,421 


46 


TRADE    AND    TRANSrORTATION    BETWEEN 


tons;  thirtepn,  21,805  tons;  fivo,  3,n:50  tons;  two  (tentlors),  324  tons;  making  a  total 
af^gregate  of  42,880  tons. 

The  vessels  of  this  company  make  seventy-eight  arrivals  at,  and  seventy-eight  de- 
[>artnrcs  from  Panama  during  a  year  ;  that  is  to  say,  the  steamers  of  the  through  Hue 
to  Chili  arrive  and  depart  weekly  (fifty-two  times),  ami  the  steamers  which  do  not  go 
farther  south  than  Guayaquil  arrive  and  depart  fortnightly  (twenty-six  times). 

The  Colombian  Government  pays  the  Pacific  Steam  Navigation  Company  $1,050 
(pesos)  per  month  for  transportation  of  mails,  but  information  as  to  the  amounts  is 
not  obtainable  here. 

The  South  American  Steam-ship  Compauy  (Compaula  Sud  Americana  de  Vapores) 
has  its  principal  office  at  Valparaiso,  the  vessels  sailing  under  the  flag  of  Chili. 

The  fleet  of  this  line  consists  of  sixteen  steam-ships  and  one  steam-tug,  which  are 
thus  described  by  the  company,  namely: 


Names  of  eteamera. 


Imperial 

Mapocho 

Maipo 

Cachapoal 

Laja 

Amazonas 

Lautaro 

Itata 

"Valdiva 

Copiapo 

Limari 

Biobio 

Longari 

Maule 

Pudeto 

Hnanay 

Ardilla  (tng-boat) 


Aggregate  tonnage 29,706 


Freight 
capacity. 


Regis- 
tered ton- 
nage. 


1,608 
1,  .i52 
1,  500 
1,484 
1,335 
1,300 
1,  350 
1,201 
1,145 
890 
750 


Speod- 


MileK. 
18 
15 
15 
15 
15 
15 
13 
13 
10 
12 
10 
12 
10 
10 
10 
10 


Light. 


Electric. 
Do. 
Do. 
Do. 
Do. 


A  new  vessel,  the  Aconcagua,  of  3,500  tons  and  a  speed  of  18  miles  per  hour,  will 
soon  be  finished  and  added  to  the  line,  and  another  small  vessel  is  now  being  built 
for  the  trade  between  Guayaquil  and  Panama.  I  have  been  particular  to  describe 
the  foregoiug  ships  separately,  because  they  would  all  become  a  part  of  the  Chilian 
navy  in  case  that  Chili  should  become  engaged  in  war  with  a  foreign  power. 

The  principal  vessels  of  this  line  are  magnificent  ships,  replete  with  every  modern 
convenience,  and  altogether  the  most  comfortable  vessels  I  have  ever  traveled  on. 

At  present  the  service  of  this  conipanj''  consists  only  of  the  through  line  Itetweeu 
Valparaiso  and  Panama.  The  ships  leave  from  both  ends  of  the  lino  fortnightly,  ar- 
riving at  Panama  on  alternate  Thursdays,  and  departing  from  Panama  on  alternate 
Saturdays. 

Leaving  Panama  they  call  at  Guayaquil,  Paita,  Eten,  Pacasmayo,  Salavery,  Gal- 
lao,  Tambo  de  Mora,  Pisco,  Lomas,  Qnilca,  Mollendo,  Pisagna,  Iqnique,  Autofogasta, 
Taltal,  Chanaral,  Caldera,  Carrizal  Biijo,  Huasco,  Coquimbo,  Valparaiso. 

In  September  a  new  line  will  be  in  operation,  running  between  Callao  and  Pan- 
ama bi-monthly  trips  each  way,  and  calling  at  sill  the  intermediate  ports  of  Peru, 
Ecuador,  and  Colombia. 

The  freight  tariff  from  Valparaiso  to  New  York  and  San  Francisco,  by  connection 
with  Pacific  Mail  Steam-ship  Company,  range  from  $15  to  $37. .50,  in  United  States 
gold,  per  ton.  The  rate  of  freight  from  Panama  to  Guayaquil  or  to  Paita  is  $15  (sil- 
ver sols)  per  ton  ;  to  Callao  .and  V.'ilparaiso,  !ii;20  i)er  ton.  Tlio  competition  between 
this  line  and  the  Pacific  Steam  Navigation  Company  has  reduced  the  rates  for  freight 
and  passage  from  50  to  J80  per  cent.    For  instance,  the  price  of  first-class  passage 


THE    UNITED    STATES    AND    LATIN    AMERICA.  47 

from  Panama  to  Callao  was  formerly  f  190,  and  now  it  is  a  matter  of  bargain,  rating 
geiK'rally  at  about  |40. 

'I'lio  cntilian  Govcinnieufc  pays  to  the  South  American  Steam-ship  Company  for  the 
weekly  line  between  Vali)araiH0  and  Calhio  and  intermediate  ports,  $125,000  per  an- 
num. On  the  1st  of  February,  1888,  when  the  line  was  extended  to  Panama,  with 
bi-monthly  trips,  the  Government  of  Chili  agreed  to  increase  the  subsidy  by  an  ad- 
ditional $100,000  for  each  of  the  first  two  years,  and  $75,000  for  each  of  the  following 
years  until  May,  1894.  This,  of  course,  includes  the  transportation  of  the  Chilian 
mails. 

One  small  and  very  indifferent  steamer,  of  about  300  tons  carrying  capacity,  plies 
monthly  between  the  port  of  Panama  and  the  port  of  David,  the  latter  being  the 
chief  town  of  the  Chiriqni  district,  in  the  western  part  of  the  department  of  Panama, 
and  about  75  miles  from  the  frontier  of  Costa  Rica.  It  owes  its  main  support  to  the 
cattle  trade,  and  serves  to  bring  to  market  the  few  products  of  the  western  district. 

Respectfully  submitting  the  foregoing  for  your  information, 
I  am,  sir,  your  obedient  servant, 

Thomas  Adamson, 
United  States  Consul-General. 


48  TRADE    AND    TliANyi'OKTATlON    BETWEEN 


VII. 

THE  COMMERCE  OF  VENEZUELA. 


It  is  shown  by  the  statistics  of  our  trade  that  where  we  have  lines 
of  steamers  our  merchants  have  no  difficulty  in  competing  with  those 
of  England,  Germany,  and  France,  and  the  increase  of  our  commerce 
is  noted.  Take  as  an  example  the  Republic  of  Venezuela,  with  which 
we  had  a  commerce  of  only  $3,300,000  twenty  years  ago.  Then  there 
was  but  one  house  engaged  in  the  trade;  nearly  all  the  imports  were 
brought  from  Europe  and  nearly  all  the  exports  were  sold  there.  Now 
we  have  a  commerce  with  that  country  amounting  to  $13,080,000  in 
1888,  or  nearly  one-half  the  total  foreign  commerce  of  the  country,  which 
is  between  twenty-seven  and  twenty-eight  millions  of  dollars. 

In  1868  our  exports  to  Venezuela  were  only  $901,000.  Now  they 
amount  to  $3,038,000  annually,  having  increased  more  than  300  per  cent, 
since  steam-ship  communicationwas  established.  The  exports  from  Eng- 
land to  Venezuela  during  the  year  1888  were  but  $786,000  more  than  from 
the  United  States,  and  the  exports  from  France  were  only  about  one- 
third  of  those  from  this  country. 

THE   TRADE  EN  COTTON  GOODS. 

More  than  two-thirds  of  the  exports  from  England  to  Venezuela  were 
cotton  goods — $2,386,380  out  of  a  total  of  $3,794,-403 — and  the  other  large 
item  was  railway  iron  and  sujiplies.  The  latter  is  due  to  the  fact  that 
the  railways  of  Venezuela  have  been  and  are  still  being  constructed 
by  English  contractors,  who  naturally  purchase  their  material  in  their 
own  country.  Therefore  this  item  should  not  be  charged  to  any  lack  of 
enterprise  upon  the  part  of  the  merchants  of  the  United  States. 

The  reason  why  Venezuela  purchases  her  cotton  goods  in  England— 
and  they  constitute  almost  the  exclusive  wearing  apparel  of  the  common 
people  of  both  sexes — is  that  the  manufacturers  of  the  United  States 
have  not  and  for  some  reason  will  not  produce  goods  suitable  to  that 
market.  This  is  the  uniform  testimony  of  the  merchants  of  Caracas 
and  other  cities  of  that  liepublic.  In  commenting  u])on  this  fact  the 
South  American  Commission,  in  their  report  on  Venezuela,  said: 

Our  merchants  and  mannfactnrorH,  if  they  desire  to  compete  with  those  of  Great 
Britain,  France,  and  Germany,  shonld  rely  on  the  truly  American  coiuniercial  and 
nianufacturius  enterprise  and  sagacity,  which  exhibit  themselves  in  ascertaining 
the  wants  and  even  prejudices  of  the  customers  they  seek  to  win,  in  supplying  such 


THE    UNITED    .STATES    AND    I.ATIN    AMERICA.  49 

goods  as  they  are  disposed  to  buy,  and  in  avoiding  all  attempts  to  pass  off  inferior 
or  damaged  wares  upon  people  who,  although  not  as  advanced  in  general  material 
progress  as  ourselves,  are  noted  for  their  perspicacity  and  individual  independence. 

Here  our  merchants  and  dealers  have  no  serious  obstacle  in  the  credit  system; 
the  Venezuelan  importers  and  traders  without  exception,  so  far  as  we  could  learn, 
buy  for  cash.  Tbey  ar«  strong  in  resources,  and  havt}  built  u])  a  profitable  tradti,  so 
that  though  they  give  credit  to  interior  dealers,  yet  they  do  not  ask  it  for  themselves. 

The  superiority  of  many  of  our  American  fabrics  has  led  foreign  manufacturers  to 
acts  of  dishonest  imitations  and  labels.  In  a  large  dry-goods  importing  house  in 
Caracas  we  were  shown  by  the  pro])rietor  bolts  of  cloth  having  an  impress  of  the 
American  eagle  and  the  words  beneath  "Best  American  drilling  "  turned  out  of  the 
looms  of  Manchester,  England.  The  goods  were  inferior,  and  the  label  was  designed 
to  injure  the  reputation  of  the  American  article,  and  yet  gain  for  the  dishonest  manu- 
facturer the  price  of  the  genuine  fabric. 

TRADE  NOT  AFFECTED  BY  THE  TARIFF. 

Our  trade  iii  Venezuela  is  not  affected  by  the  tariff  of  the  United 
States,  for  we  are  able  to  compete  in  that  market  with  the  European 
manufacturers  in  every  line  of  merchandise  that  we  produce  for  export. 
A  reciprocity  treaty,  by  which  the  government  of  that  Kepublic  would 
stipulate  to  admit  free  of  duty  our  breadstuffs,  provisions,  refined 
petroleum,  and  lumber,  in  excliange  for  the  free  admission  of  her  sugar 
into  our  ports,  would  greatly  increase  our  trade  in  that  direction  and 
might  result  in  the  development  of  her  sugar  industry.  In  order  to  en- 
courage her  planters  the  Venezuelan  Congress  some  years  ago  imposed 
a  in'ohibitory  duty  on  sugar,  and  the  entire  domestic  supply  is  now  pro- 
duced within  the  limits  of  the  Eepublic,  but  none  is  exi)orted.  The  un 
productive  area  of  available  sugar  land  is  enormous,. but  the  capital  and 
the  labor,  as  well  as  the  enterprise,  are  lacking. 

The  duty  on  breadstuffs  is  very  high,  the  retail  price  of  flour  in  the 
markets  on  the  sea-coast  being  $14  per  barrel.  Lumber  is  sold  at  $100 
per  thousand  feet,  and  the  cost  of  furniture,  imported  provisions,  and 
petroleum  is  such  as  to  prohibit  their  purchase  by  the  laboring  classes. 
Gas  at  Caracas,  the  only  city  in  the  Eepublic  where  it  is  made,  is  $8 
per  thousand  feet.  Electric  lights  have  recently  been  introduced  at 
Caracas,  Valencia,  and  Maracaibo,  the  principal  cities. 

Venezuela  enjoys  ample  steam  ship  facilities,  not  only  with  Europe, 
but  is  one  of  the  few  countries  in  Central  and  South  America  with  which 
we  have  regular  and  rapid  communication. 

The  banking  fiicilities  and  credit  system  between  the  United  States 
and  Venezuela  are  adequate,  but  there  is  a  great  deal  of  complaint 
about  the  extortions  practiced  upon  imj)orters  at  the  custom-houses  of 
that  Kepublic  for  unintentional  violations  of  the  customs  regulations. 

THE  RED  D  STEABIERS. 

Wherever  we  have  proper  transportation  facilities,  as  is  the  case 
with  Venezuela,  our  trade  is  in  a  satisfactory  condition,  and  only  needs 
attention  from  our  manufacturers  and  exporting  merchants  to  be  vastly 
S.  Ex.  54 4 


50  TRADE    AND    TRANSPORTATION  BETWEEN 

enlarged.  Messrs.  Boulton,  Bliss  &  Dallett,  of  New  York,  who  own  and 
operate  the  line  of  steamers  to  Venezuela,  have  found  their  trade  in- 
creased, and  their  steam-ships  ])a.ving  expenses  after  a  brief  experiment, 
and  this  result  has  been  reached  even  against  the  subsidized  Koyal  Mail 
Steam  Packet  Company,  of  England,  which  receives  nearly  $500,000 
from  the  British  Government,  and  $90,000  from  the  Island  of  Barba- 
does  for  making  that  place  its  rendezvous,  and  the  heavily  subsidized 
French,  Spanish,  and  Dutch  lines. 

The  United  States  Government  has  paid  but  $13,070.73  to  encourage 
the  "  Eed  D  "  line  since  its  establishment.  In  1884  it  received  for  the 
transportation  of  our  mails  $1,046.32;  in  1885,  $1,392.94;  in  1886  no 
money  was  received  by  these  steamers  for  the  transportation  of  mails, 
the  bulk  of  them  being  carried  for  nothing.  In  1887  the  amount  of 
business  had  increased  so  that  even  at  the  low  rate  of  compensation 
l)aid,  the  money  received  was  $4,547.47  ;  in  1888  the  amount  was  $6,084. 
The  distance  traveled  by  these  steamers  each  round  trip  is  4,260  nauti- 
cal miles,  and  the  total  distance  traveled  each  year  is  132,060  nauti- 
cal miles.  Their  compensation  for  postal  services  in  1885  was  only  an 
average  of  $41  per  voyage,  or  $8.20  per  visit,  and  it  always  cost  them 
more  than  tbis  to  transfer  the  mails  between  the  post-office  and  the 
steamers.  The  value  of  the  trade  that  has  been  built  up  by  this  line  of 
steamers  is  shown  by  the  fact  that  10,000  bales  of  cotton  goods  were 
shipped  to  Venezuela  from  the  United  States  in  1888,  while  in  1880 
but  1,200  bales  were  shipped  there. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  51 


VIIL 

THE  COMMERCE  OF  ECUADOR. 


Our  commercial  relations  with  the  Eepublic  of  Ecuador  are  so  limited 
that  they  do  not  appear  in  the  reports  of  our  Bureau  of  Statistics  ; 
yet  that  country  has  a  foreign  commerce  amounting  from  twenty  to 
twenty-two  million  dollars  a  year,  of  which  the  exports  are  about 
eleven  million  dollars  and  the  imports  about  ten  millions. 

The  most  imijortant  crop  is  that  of  cocoa,  which  amounts  to  about 
five  million  dollars.  The  best  quality  and  the  greatest  quantity  goes  to 
Spain,  the  United  States  taking  only  about  $350,000  worth  annually. 
We  take  all  of  the  rubber  and  nearly  all  of  the  hides.  Of  the  coffee 
we  take  about  one-seventh;  of  the  Peruvian  bark  the  same  proportion. 

Ecuador  buys  her  goods  abroad  in  this  order:  First,  England,  then 
France,  then  Germany,  then  the  United  States.  Last  year  England 
sent  her  about  $2,600,000,  of  which  nearly  the  entire  amount  was  cot- 
ton goods,  while  the  United  States  sent  only  about  half  as  much, 
chietly  hardware,  edged  tools,  kerosene  oil,  lard,  and  other  provisions, 
cotton  goods,merchandise,  lumber,  and  wheat  flour.  The  cotton  goods 
were  produced  in  New  England,  the  hardware  and  machinery  in  the 
Eastern  and  Middle  States,  the  oil  and  provisions  in  the  Western  States, 
the  lumberin  the  Southern  States,  and  the  flour  in  California. 

OUK  EXPORTS  TO  ECUADOR. 

Our  exports  to  Ecuador  may  be  said  to  have  remained  stationary 
during  the  last  few  years,  while  our  imports  from  that  country  have  de- 
creased, as  the  production  of  india  rubber,  which  was  formerly  quite 
an  item  there,  has  diminished  considerably.  But  the  importations  of 
cocoa,  as  well  as  those  of  cofiee,  have  increased  somewhat  of  late.  With 
regard  to  the  imports  of  breadstuff's,  wood  and  manufactures  of  wood, 
provisions,  and  similar  commodities,  the  advantage  is  in  favor  of  the 
United  States.  In  machinery  our  exports  are  as  large,  and  often  larger 
than  those  of  the  European  manufacturers,  and  in  cotton  goods  the  low 
grades  can  be  bought  to  the  same  advantage  here  as  in  Europe,  al- 
though a  special  effort  is  mude  by  the  manufacturers  of  Manchester  to 
I)roduce  a  fabric  suitable  to  that  trade. 


52  TRADE  AND  TRANSPORTATION  BETWEEN 

Our  means  of  communication  with  Ecuador  are  by  the  Pacific  ISTail 
Steamship  Company  to  Aspinwall,  thence  by  rail  to  Panama,  and  then 
by  the  steamers  of  the  Pacific  Steam  Navigation  Company,  ot  Liver- 
l)ool,  or  the  Chilian  Company,  which  has  recently  been  established  as 
a  rival  to  the  English  line.  The  lumber  is  all  carried  upon  sailing  ves- 
sels around  the  Horn,  and  much  of  the  bulk  of  goods  goes  in  the  same 
way.  The  Pacific  Steam  Navigation  Company  is  heavily  subsidized  by 
the  Englisli  Government,  and  the  Chilian  line  received  a  subsidy  of 
$225,000  a  year  from  Chili. 

THE  QUESTION  OF  FREIGHTS. 

In  regard  to  the  freights,  the  South  American  Commission  speak  as 
follows  in  their  report  on  Ecuador: 

We  gathered  from  several  gentlemen  information  touching  our  trade  at  Guayaquil, 
■which  we  may  summarize  in  the  following  manner:  Referring  to  the  freight  ques- 
tion, meutioniMl  by  the  president,  and  reiterated  by  every  merchant  we  conversed 
with,  we  found  that  the  usual  charge  per  ton  by  steamer  from  New  York  to  Guaya- 
quil is  |130,  and  from  England  it  is  a  little  less  than  $27,  while  for  sailing  vessels  it  is 
only  one-half  to  Liverpool,  Bordeaux,  or  Hamburg  what  it  is  to  New  York.  In  the 
case  of  heavy  shipments  these  rates  are  subject  to  some  modification.  It  will  be  seen 
at  once  that,  other  things  being  equal,  the  foreign  dealer  has  in  this  item  a  marked 
advantage  over  those  of  our  country,  the  difference  in  freight  alone  in  some  articles 
being  a  fair  profit.  The  same  hindrance  we  found  stood  in  the  way  of  the  flour  of 
California  seeking  a  market  here.  The  sni^ply  comes  almost  wholly  from  Chili, 
though  the  California  article  is  much  preferred.  One  importer  told  us  that  three 
years  ago  Hour  from  San  Francisco  cost  him  $12  per  ton  in  gold  for  freight,  while  the 
Chili  product  cost  only  $8  and  $10,  and,  when  brought  in  sailing  vessels,  only  $4 
per  ton.  He  was  discouraged  with  the  venture,  and  imported  no  more  flour  from 
California.  Were  the  freights  less,  California  would  monopolize  the  flour  trade  of 
Ecuador,  for,  at  the  same  price,  its  superiority  would  control  the  market. 

So  long  as  all  the  business  of  this  coast  is  done  in  foreign  ships,  diverting  trade  to 
their  own  countries  and  remaining  unrestricted  as  to  charges,  it  seems  for  that  time 
the  balances  of  the  business  will  go  to  other  nations  than  our  own.  A  line  of  steam- 
ers, cared  for  and  fostered  by  our  people,  limited  as  to  charges,  would  soon  absorb 
the  bulk  of  the  business  here,  other  things  hereinafter  mentioned  being  rectified. 
Whether  this  shall  be  done  by  the  direct  intervention  of  the  Government  in  some 
form  or  shall  be  left  to  private  enterprise  aided  to  a  certain  limit  by  the  Government 
is  a  question  we  need  not  discuss  since  its  settlement  depends  entirely  upon  Congress. 
That  the  people  here  have  a  just  ground  of  complaint  appears  obvious.  From  Panama 
to  Valparaiso  is  about  the  same  distance  as  from  New  York  to  Liverpool.  A  passen- 
ger pays  for  the  latter  trip  about  $75;  for  the  former,  $250.  The  same  extraordinary 
disproportion  in  freight  charges  exists. 

STATEMENT  OF  MR.  F.   G.  PIERRA. 

Mr.  F.  G.  Pierra,  of  New  York,  who  has  a  very  large  trade  with 
Ecuador,  in  a  communication  to  the  writer,  says: 

The  customs  regulations  of  Ecuador  are  not  the  most  defective  of  those  of  the 
Spanish  American  Republics;  still,  I  think  that  there  is  room  for  improvement.  Tiie 
articles  of  merchandise  are  classified  under  nine  different  heads.  Class  the  first  com- 
prises Jirticles  the  importation  of  which  is  prohiliited;  class  the  second,  those  admitted 
free  of  duty ;  clasa  the  third,  those  paying  1  cent  of  suore  per  kilogram,  gross  weight ; 


THE    UNITED    STATES    AND    LATIN    AMERICA.  53 

class  the  fourth,  2  cents  ;  class  the  fifth,  5  cents  ;  class  the  sixth,  10  cents;  class  the 
eeveuth,  50  cents;  class  the  eighth,  1  sucro;  class  the  ninth,  2")  ctsuts. 

Among  the  articles  coinpriscil  in  class  the  first  whoso  importation  is  forbidden  are 
rum,  all  kinds  of  munitions  of  war,  rifles,  cartridges,  Imllets,  bombs,  hand-grenades, 
etc.;  as  well  as  revolvers,  carbines,  pistols,  powder,  etc.,  dynamite  and  other  explo- 
sives ;  petroleum  under  150  degrees  test,  and  other  minor  articles. 

In  the  second  are  comprised,  free  of  duty,  travelers'  baggage,  pitch,  tar,  ropes,  cotton 
duck,  and  other  articles  intended  for  the  construction  or  repair  of  vessels.  Also  the 
natural  or  manufactured  products  of  Colombia  and  Peru  ;  machinery  and  mining 
tools,  fire-engines,  boats  and  other  small  crafts,  coal,  life-preservers,  oars,  etc. 

In  the  third  class  are  included,  among  other  articles,  Roman  cement,  bricks,  stone 
filters,  slates,  tiles,  pig-iron,  etc. 

In  class  the  fourth  are  included  anchors,  iron  wire,  plows,  hoes,  picks,  shovels,  iron 
nails,  store  trucks,  unmanufactured  iron,  steel,  copper,  tin,  agricultural  machines, 
lumber  (undressed  boards  and  scantling),  iron  pipes,  types  and  printers'  materials, 
paper  for  newspapers,  etc. 

In  the  fifth  class  are  common  harnesses,  empty  barrels,  pipes,  pails,  iron  chains 
for  vessels,  common  glassware,  manilla  and  sisal  rope,  salt  meats,  petroleum,  hams, 
carriages,  etc. 

The  sixth  class  comprises  linseed-oil,  varnishes,  trunks,  manufactured  iron,  me- 
chanics' tools,  butter,  household  furniture,  paints,  caudles,  billiards,  lard,  writing 
paper,  etc. 

In  the  seventh  class :  All  kinds  of  woolen  goods,  and  unmanufactured  and  manu- 
factured tobacco. 

In  class  the  eighth:  Chromes,  artificial  flowers,  hats,  shoes,  etc. 

In  class  the  ninth :  All  non-enumerated  articles,  and  consequently  cotton  prints, 
drillings,  white  goods,  etc. 

Export  duties  on  each  100  kilograms  are  charged,  among  others,  on  the  following 
articles:  Oucocoa,  64  cents;  on  coffee,  44  cents;  on  india-rubber,  .$5;  on  hides, 50  cents. 

The  objectionable  feature  of  the  customs  tariff  of  Ecuador  is  the  classification 
which  the  exporter  here  is  compelled  to  make  of  the  goods  which  he  ships. 

The  following  duties  are  charged  per  kilogram  of  gross  weight  on  wheat:  Indian 
corn  and  other  flour,  5  cents;  on  wheat,  barley,  and  Indian  corn,  2  cents;  on  salted 
and  smoked  meats,  5  cents;  on  lard  and  butter,  10  cents;  on  lumber  (rough  boards 
and  scantling),  2  cents. 

A  RECIPROCITY  TREATY  DESIRABLE. 

In  ray  opinion  it  is  very  desirable  that  the  United  States  should  engage  in  reciproc- 
ity treaties  with  the  other  American  countries  as  the  most  effective  way  of  obtaining 
an  immediate  enlarged  outlet  both  for  our  manufactures  and  for  our  farm  and  forest 
products.  From  Ecuador,  however,  at  present  we  do  not  import  any  article  which 
is  not  admitted  duty  free,  and,  conseiiuently,  I  do  not  see  what  could  be  oft'ered  in  re- 
t«m  for  the  concession  which  might  be  asked  of  that  country.  Moreover,  we  are  not 
very  important  consumers  either  of  their  cocoa  and  coffee  or  hides  and  ivory  nuts. 
The  sugar  produced  in  Ecuador  is  scarcely  enough  to  supply  the  consumption  of  the 
country.     None  comes  here. 

The  monetary  unit  in  Ecuador  is  the  Sucre,  a  silver  coin,  I  believe,  of  the  same 
standard  and  weight  as  the  Colombian  peso,  and  equivalent  to  70  cents  American 
gold.  The  state  of  the  currency,  since  the  reform  which  was  made  four  years  ago,  is 
not  bad;  although  I  hear  some  complaints  lately  on  account  of  the  influx  of  worn- 
out  coins  from  adjoining  countries.  The  paper  currency  consists  of  bank  notes,  re- 
deemable in  coin. 


54  TRADE    AND    TRANSPORTATION    I'.ETWl^F.X 


IX. 

THE  COMMERCE  OF  PERU. 


The  condition  of  Peru  since  the  war  with  Chili  has  been  that  of  com- 
plete commercial  and  financial  prostration.  The  industries  of  the  Re- 
])nl)lic  were  paraly^^ed,  the  plantations  were  devastated,  the  mines  were 
flooded,  and  the  machinery  for  working  them  destroyed,  the  laboring 
population  depleted,  and  the  people  as  well  as  the  Government  reduced 
to  the  utmost  poverty.  A  large  and  profitable  commerce  was  destroyed, 
the  productions  of  the  country  have  beeu  scarcely  sufficient  for  local 
consumption,  and  the  imports  of  foreign  merchandise  limited  to  the 
meager  necessities  of  life. 

But  the  Congress  of  Peru  after  a  long  struggle  has  recently  accepted 
a  plan  of  compromise  with  the  holders  of  the  foreign  debt  which  is 
expected  to  result  in  the  revival  of  prosperity  in  a  laud  of  elastic  con- 
ditions and  almost  uulimited  resources.  It  is  hoped  that  there  will  be 
an  immediate  resumption  of  activity  in  all  lines  of  business,  an  influx  of 
immigration  and  foreign  capital,  and  that  a  restoration  of  confidence  in 
commercial  circles  will  follow  the  restoration  of  the  national  credit. 

THE  FORMER  COMMERCE  OF  PERU. 

In  discussing  the  commerce  of  Peru  I  refer  to  the  report  of  the  South 
American  Commission,  whose  observations  in  that  country  were  thorough 
and  hold  good  at  the  present  date.     It  says: 

Tho  commerce  of  Peru  with  the  Uuitecl  States  was  formerly  very  large,  but  it  has 
now  been  reduced  to  a  more  nominal  amount,  including  only  those  articles  which  can 
not  be  X'urchased  elsewhere.  Before  tho  late  war  with  Chili  large  imports  of  wheat, 
lumber,  lard,  kerosene,  canned  goods,  trunks,  clocks,  sowing-machines,  railway  and 
8tre(;t  car  supplies,  household  utimsils,  perfumery,  patent  nu^diciui's,  cordage,  sail- 
cloth, and  other  articles,  were  made  from  the  United  States.  But  during  the  first  six 
months  of  1884  less  t.han  $1500,000  worth  was  imported  from  our  country,  of  which 
$.'>,000  was  lumber,  $22,000  lard,  $40,000  kerosene  oil,  $ir),000  wheat,  and  $130,000 
geueral  merchandise.  In  linen,  cotton,  and  woolen  goods  the  United  States  has  no 
hold  on  Peruvian  commerce,  nor  can  our  merchants  obtain  one  until  the  bnsinesa 
system  at  houic  is  modified  to  meet  the  requirements  of  this  coast,  the  chief  obsta- 
cle being  found  in  tho  matter  of  credits.  English  and  continental  importers,  through 
their  agents  and  consignees  in  Peru,  until  tho  recent  financial  crisis,  gave  credit  to 


THE    UNITED    STATES    AND    LATIN    AMERICA.  55 

the  purchasers,  sometimes  oxlondinp  to  eight,  ten,  and  twelve  nioiiths,  and  naturally 
the  pnrch;iser  i)refer8  deal in;^  with  niercbant.s  granting  Kuch  privilisi^os.  Tiii.s  refers 
particularly  to  linen,  woolen,  cotton,  and  other  forms  of  wearin<r  apparel,  with  which 
the  interior  Peruvian  markets  are  supplied  by  merchants  on  the  coast,  who  are  com- 
pelled to  give  credit  to  their  customers  and  expect  credit  from  those  of  whom  they 
bny. 

Custom  and  habit  also  have  a  great  influence  in  Peru,  as  in  other  Spanish-American 
countries.  The  purchaser  becomes  accustomed  to  a  certain  class  of  goods  with  a 
peculiar  trade-mark,  or  some  special  token  or  medal  attached  to  the  bale  or  parcel  of 
goods,  and  on  no  account  will  he  invest  in  any  other  description  of  the  material,  if 
the  old  one  can  be  had.  This  conservatism  of  the  Peruvians,  which  is  especially 
marked  in  the  interior,  is  at  once  apparent  from  the  fact  that  they  use  the  same  im- 
plements of  agriculture  and  husbandry  that  were  employed  at  the  time  of  the  Span- 
ish conquest.  American  hardware  and  agricultural  machinery  might  be  pushed  in 
the  interior  by  means  of  active  agents,  and  by  paying  attention  to  the  form  of  pack- 
ing necessary  for  transportation  on  mule  back. 

THE  PROSPEKOUS  ERA  OF  THE  REPUBLIC. 

From  1870  to  1880,  before  the  war  with  Chili  began,  the  exports  from 
the  United  States  to  Peru  averaged  nearly  $2,000,000  annually,  but 
they  have  now  fallen  off  until  the  average  is  less  than  $000,000.  In 
1875,  for  example,  which  was  one  of  the  average  years,  when  Peru  was 
at  peace,  she  imported  $2,480,000  worth  of  merchandise  from  the  United 
States,  consisting  of  iron  and  steel,  $1,100,000;  lumber  and  furniture, 
$411,000;  provisions,  $200,000;  petroleum,  $105,000;  breadstuff's, 
$75,000;  cotton  manufactures,  $26,000;  cordage,  $12,000;  drugs, 
$27,000;  tobacco,  $15,000;  and  about  half  a  million  dollars' worth  of 
other  merchandise.  This  trade  has  so  far  fallen  off  that  in  1888  we  ex- 
ported to  Peru  but  $120,000  worth  of  iron  and  steel,  $108,000  worth  of 
lumber  and  furniture,  $114,000  worth  of  provisions,  $820  worth  of  oil, 
no  drugs  at  all,  no  tobacco,  $46,000  worth  of  breadstuff's,  no  cordage,  and 
$  174,000  worth  of  cotton  goods. 

WHERE   PERU  BUYS   HER   MERCHANDISE. 

As  has  been  said  above,  no  commercial  statistics  have  been  published 
in  Peyu  since  1877,  owing  to  revolutionary  movements  and  the  war  with ' 
Chili,  and  it  is  not  possible  to  give  any  accurate  estimate  of  the  com- 
merce of  the  country  since  that  time.  Hitherto  Peru  has  got  her  cotton 
goods  mostly  from  England,  some  from  France  and  Germany,  and  only 
a  few  from  the  United  States.  Woolen  goods  have  come  mostly  from 
France  and  Germany,  her  linen  goods  from  the  same  countries,  and  her 
silk  from  France  and  China.  Her  furniture  has  mostly  come  from  the 
United  States ;  her  ready-made  clothing,  from  France  and  England; 
her  general  merchandise,  from  England,  France,  Germany,  and  Italy, 
with  a  considerable  amount  of  what  are  commonly  termed  "  Yankee 
notions"  from  the  United  States.  Most  of  her  breadstuff's  have  come 
from  Chili  and  the  United  States;  her  fine  preserved  fruits,  from  Eng- 
land and  France ;  and  her  preserved  provisions  from  the  United  States. 


56  TRADE  AND  TRANSPORTATION  BETWEEN 

Eiij^laiicl,  France,  and  (iermany  liave  controlled  the  drug  trade.  Tier 
railnjad  supplies  have  been  divided  between  the  United  States  and 
England,  the  greater  portiou  of  the  railroad  iron,  locomotives,  and  en- 
gines being  bought  in  the  latter  country  rnd  the  cars  in  the  United 
States.  Her  agricultural  machinery  and  her  sugar  mills  have  come 
from  England  and  France,  leaving  to  the  United  States  a  monopoly  only 
of  lard  and  kerosene. 

EXPORTABLE  PRODUCTS 

The  exports  of  Peru  formerly  were  very  large,  amounting  oftentimes 
to  treble  her  imports.  Of  the  exports  the  United  States  has  had  only 
a  small  proportion,  consisting  of  guano,  nitrate  of  soda,  hides,  and 
sugar.  The  principal  articles  exported,  outside  of  guano  and  nitrate, 
have  been  silver,  copper,  and  sugar,  which  have  gone  to  England, 
France,  and  Germany.  A  little  cotton  has  been  sent  to  France,  Eng- 
land, and  Chili ;  rice  to  Chili  and  Panama ;  cocoa  to  France,  Germany, 
and  England;  sarsaparilla  to  England,  France,  and  Germany;  choco- 
late to  England,  France,  and  Germany ;  wool  to  England  and  France  j 
tobacco  to  Chili  and  Ecuador;  drugs  and  dyestuifs  to  German 3',  Eng- 
land, and  France  ;  while  the  United  States  has  taken  a  greater  part  of 
the  hides  and  goat-skins. 

The  exports  from  Peru  to  the  United  States  in  188S  were  only  $309,040, 
and  consisted  chiefly  of  chemicals,  drugs,  hides,  and  skins.  The  exports 
to  England  were  valued  at  $7,9Sl,917,  of  which  about  half  were  chem- 
icals and  drugs ;  $1,358,000  sugar,  and  $1,340,000  wool.  The  exports 
to  France  amounted  to  $4,794,000,  of  wbich  $3,890,000  were  chemicals 
and  drugs ;  and  to  Germany  $2,029,000,  of  which  $1,953,000  was  silver 
ore. 

OUR  EXPORTS   TO  PERU. 

Our  exports  to  Peru  in  1888  reached  $865,160,  w^hile  those  of  England 
w^'re  valued  at  $3,489,869,  and  those  of  France  $1,055,625.- 

It  would  be  very  easy  for  the  United  States  to  engage  in  a  reciprocity 
treaty  with  Peru,  provided  our  Congress  would  consent  to  admit  free 
of  duty  the  sugar  and  wool  of  that  country,  in  consideration  of  similar 
concessions  on  her  part. 

Peru  has  adequate  steam-ship  communication  with  Europe,  but  has 
none  with  the  United  States.  Touching  her  ports  regularly  are  lines 
of  steamers  from  England,  Germany,  and  France,  all  of  which  are  sub- 
sidized. Tlie  freight  rates  to  the  United  States  are  about  $29  a  ton, 
while  those  to  Liverpool  are  $14  or  $15,  and  to  Uamburg  even  less. 

Being  a  silver-producing  country,  and  having  untouched  deposits  of 
nnnieasured  wealth,  Peru  would  be  glad  to  secure  the  adoption  of  a 
common  coin. 


THE    UNITED    STATES    AND    LATIX    AIMKRTCA.  ")? 


THE  COMMERCE  OF  BOLIVIA. 


The  foreign  trade  of  Bolivia  amounts  to  about  $20,000,000  a  year,  and 
is  nearly  equally  divided  between  exports  and  imports.  The  principal 
exports  are  silver  bullion,  hides,  skins,  Peruvian  bark,  coca,  and  other 
drugs  and  medicines,  coffee,  and  copper.  The  principal  imports  are 
wearing  apparel,  machinery,  hardware,  cutlery,  clocks,  watches,  and 
canned  provisions.     England  very  nearly  monopolizes  the  trade. 

The  commerce  between  the  United  States  and  Bolivia  is  not  deemed 
of  a  sufficient  amount  to  enter  into  the  competitions  of  our  statistical 
bureaus.  We  really  have  no  direct  commerce  with  that  country,  and 
the  merchants  only  i)urchase  here  what  they  can  not  elsewhere  obtain. 

The  exports  of  Enghmd  to  Bolivia  are  mostly  cotton  goods,  which  is 
the  principal  wearing  apparel  of  the  people,  with  some  drugs,  hard- 
ware, machinery,  and  notions.  France  furnishes  a  large  part  of  the 
wearing  apparel,  jewelry,  fancy  goods,  wines,  and  canned  provisions. 

HOW  BOLIVIA  IS  REACHED. 

Bolivia  is  the  least  accessible  of  all  the  South  American  countries, 
which  is  due  to  the  fact  that  her  sea-coast  was  entirely  absorbed  by 
Chili  at  the  close  of  the  recent  war,  and  the  commerce  of  the  country 
with  the  outside  world  is  now  entirely  carried  on  through  Chilian  and 
Peruvian  ports  on  the  west  coast.  The  principal  jwrt  of  entry  is 
Mollendo,  from  which  there  is  a  railroad  to  the  interior  of  the  country, 
owned  by  an  American,  Mr.  J.  S.  Tliorndyke,  and  operated  by  him  until 
recently,  when  it  was  seized  by  the  Peruvian  Government.  Mr.  Thorn- 
dyke  now  has  a  claim  before  the  Department  of  State  for  the  recovery 
of  his  road,  but  the  case  has  not  been  settled. 

Owing  to  the  fact  that  all  of  the  Bolivian  trade  is  conducted  through 
the  ports  of  other  countries,  statistics  are  difficult  to  obtain,  and  it  is 
believed  that  the  commerce  is  larger  than  the  figures  given  above,  but 
is  credited  to  either  Peru  or  Chili.    Whatever  has  been  said  with  refer- 


58  TRADE  AND  TRANSPORTATION  BETWEEN 

euce  to  Ecuador,  Pern,  or  Chili,  with  regard  to  trade  and  steam- ship  com- 
iiHinicatiou,  is  equally  applicable  to  Bolivia. 

Mr.  Melchor  Obarra,  consul-general  of  Chili  at  New  York,  in  a  re- 
ceut  interview  with  a  representative  of  "  Export  and  Finance,"  gives 
some  information  which  is  very  interesting  and  valuable,  as  follows: 

THE  COTTON  GOODS  TKADK. 

The  cotton  goodH  of  the  United  States  of  all  kinds  arc  much  proferred  Llironji,li 
Sonlli  Auiorica  to  those  manufactured  in  Europe,  but  on  account  of  the  hi<;h  freights, 
which  am  the  consequence  of  the  want  of  din^ct  steaui-ship  conininnication,  they 
come  so  high  as  to  put  them  out  of  the  reach  of  the  jioorer  class  of  people.  I  have 
read  with  great  interest  the  articles  in  your  paper  contending  that  the  Government 
ishould  do  something  to  encourage  its  shipping,  the  same  as  European  countries  do. 
It  may  he  that  a  few  of  the  short  lines  plying  between  New  York  and  the  West  In- 
dian ports  are  paying  a  fair  return  to  their  stockholders  without  subsidies,  but  sub- 
sidies are  necessary  if  you  wish  capital  to  invest  in  large  ocean  steamers  going  the 
long  distances  between  many  of  the  ports  of  South  America  and  New  York. 

DIFFICULTIES   OF  TRANSPORTATION. 

W(!  have  only  two  ways  of  sending  goods  to  Bolivia.  One  is  by  sending  them  by 
the  Pacific  Mail  steamers  to  Colon,  thence  across  the  Isthmus  of  Panama,  where  they 
;ire  tranship]ied  to  another  steamer.  The  freight  consequently  comes  extremely 
high.  The  company  charge  by  volume  where  the  freight  is  bulky,  and  by  weight 
where  it  is  heavy.  They  charge  so  as  to  make  the  rate  by  the  higher  scale.  Myex- 
jierience  in  sending  goods  has  not  been  a  fortunate  one.  Out  of  a  consignmeut  of  40 
stoves  which  I  shipped  by  way  of  the  Isthmus,  not  one  reached  Arica  without  being 
smashed.  I  sent  down  two  pianos,  and  when  they  arrived  they  were  only  fit  for 
kindling  wood,  and  my  last  venture  was  with  a  turbine  wheel,  that  was  ordered 
for  the  electric  works  that  light  the  city  of  La  Paz.  What  became  of  it  I  never 
knew.  It  reached  Colon  safely,  but  it  never  got  to  Panama,  and  it  is  probably  lying 
in  the  swamps  of  the  Isthmus. 

The  other  way  of  sending  goods  is  to  ship  them  from  hero  to  Hamburg  and  from 
Hamburg  to  Arica.  This  is  becoming  the  favorite  method  of  transporting  goods. 
Whatever  I  have  shipped  in  this  way  has  arrived  safe  and  in  good  condition  at  Arica, 
including  household  furniture  and  things  very  likely  to  be  injured  in  transit.  The 
freight,  too,  is  much  less  this  way,  and  what  an  important  consideration  freight  is, 
you  may  understand  when  I  tell  you  that  I  bought  a  wine  press  for  $200,  and  the 
freight  on  it  by  way  of  Panama  amounted  to  $250. 

MISTAKES   OF   AMERICAN   MERCHANTS. 

There  is  another  thing  that  you  people  should  do,  send  agents  into  those  countries 
of  South  America  you  wish  to  trade  with,  to  study  the  commercial  habits  of  the  peo- 
ple. The  question  of  transport  in  South  America  is  a  very  important  one,  yet  here 
you  never  seem  to  consider  it  for  a  moment.  The  greater  part  of  the  transport  in 
South  America,  and  especially  in  countries  like  Bolivia,  is  done  by  pack-mules.  A 
mule  can  not  carry  more  than  from  100  to  ir)0  pounds,  yet  your  merchants  go  on  put- 
ting uj)  your  goods  in  immense  packages,  which  have  to  be  reopened  and  repacked  in 
smaller  packages  when  they  reach  the  port  of  destination. 

Then  as  to  this  matter  of  credit.  In  many  cases  European  houses  give  as  much  as 
twenty-four  months'  credit.  This  enables  the  South  American  merchant  to  sell  at 
six  months'  credit  to  the  smaller  merchants  in  the  interior  parts  of  the  country,  and, 
as  he  is  willing  to  pay  higher  for  the  long  credit  given,  the  European  exporter  rarely 
suffers  any  loss. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  59 

RECIPROCITY  TREATIES. 

Our  i)PO])In  are  anxious  to  trade  largely  with  the  United  States,  and  wo  believe  our 
Government  weuld  be  willing  to  go  so  far  as  to  consent  to  a  treaty  of  reciprocity. 
Of  course  reciprocity  is  altogether  against  us,  because  the  main  support  of  the  Gov- 
ernment of  Bolivia,  in  common  with  the  majority  of  South  American  countries,  is 
derived  from  the  custom-house.  The  taking  off  by  your  Government  of  the  high 
tariff  imposed  on  cotton  and  wool,  our  chief  exports,  would  hardly  compensate  for 
the  loss  of  the  customs  dues  on  the  quantity  of  goods  which  the  United  States 
might  send  into  Bolivia.  Bolivia  now  has  no  coast  line,  it  havipg  been  part  of  the 
indemnity  paid  to  Chili  at  the  conclusion  of  the  last  war.  All  the  imports  into  the 
country  are  made  by  way  of  Arica  and  Antofagasta. 


XI. 


THE  COMMERCE  OF  CHILI. 


The  foreign  commerce  of  Chili  in  1888  amounted  to  $128,000,000,  of 
which  the  exports  were  $78,000,000  and  the  imports  $50,000,000.  Of 
this  commerce  the  United  States  furnished  but  $2,L*00,000  of  the  im- 
ports, and  took  but  $2,450,000  of  the  exports.  Wool  and  nitrate  were 
the  chief  articles  exported  to  the  United  States,  and  the  im[)orts  con- 
sisted of  a  variety  of  articles,  but  a  small  quantity  of  each.  England 
had  the  lion's  share  of  the  trade — about  50  per  cent.,  and  France  about 
30  per  cent. 

The  exports  of  Chili  consisted  entirely  of  raw  materials,  $63,200,030 
coming  from  her  mines,  mostly  nitrate,  copper,  and  silver,  and  $8,784,- 
3(;()  representing  the  products  of  agriculture,  of  which  $6,000,000  was 
wheat  and  other  cereals. 

THE  COMMERCE  OF  1887. 

The  commerce  of  Chili  in  1887  was  valued  at  $108,180,848,  of  which 
$59,540,958  were  exports  and  $48,030,862  were  imports.  The  imports 
in  1886  were  $44,170,147,  which  shows  an  increase  of  more  than  four  and 
one-half  millions  during  the  year.  Of  the  irni)()rts  in  1887  Great  Britain 
contributed  $20,403,584;  Germany,  $11,631,891 ;  France,  $5,500,949,  and 
the  United  States,  $3,242,314. 

The  exi)orts  of  Chili  can  be  classified  as  follows: 


Cla.s8iflcation. 

Value  in  1886. 

Value  in  1887. 

$40,  264,  340 
9,  710,  747 
66,  521 
107,391 
446,  734 
644,  416 

$40,  449, 015 

y,  :iOit,  247 

Maiiiira<-tiireH 

40,081 

MiHci'llaueoua  .... 

40,  655 

Re-exportation 

321,475 

317,485 

Total 

51, 240, 149 

59,  649,  958 

60 


THE    UNITED    STATES    AND    LATIN    AMERICA. 
The  imports  are  clasified  as  follows: 


(A 


Classification. 


1887. 


Footl  1)10(1  ucts 

Tex  tiles 

Kaw  TnatciiaLs 

Clotliiii}:, jewelry,  Pto 

Mat  liiiierj-,  tools,  etc 

Fiiriiituin  aii'l  household  goods. 
Kailway  and  telt;t;raph  aupplii-s 

Wines  and  liiiuors , 

Siiiitr,  tobacco,  etc 

I'recious  nielals 

Fine  arts      .   

Drills,  medicines,  etc 

Arms  andninmuuition , 

Miscellaneous 

■Specie  iiud  bank-notes 

Total 


$12,  300,  402 
0,  t;78,  205 
4,  886,  lO:) 

2,  429,  273 
4,  246,  300 
2,871,  176 

850,  78!) 
01.5,  8-.'7 
413,009 
110,336 
693,  384 
615,398 
59,  864 

3,  877,  925 
213,  000 


44, 170, 147 


$10,  184,  .MO 
l],4(i9,  28-J 
0,221,  190 

2,  569,  394 
5,648,557 

3,  304,  323 
1,443,827 
1,  079,  905 

447,  534 

10,279 

016,716 

686,  446 

72,  879 

4,  777,  136 

98,  854 


48, 630.  862 


THE   SHARE   OP   THE   UNITED   STATES. 

The  following  statement  shows  the  meager  share  of  these  imports 
furnished  by  the  United  States : 


Articles. 


Keflned  sugar... 

Kice 

Plows 

Turpentine 

lUnckiug 

Pitch 

Iron  safes 

Carriages 

Beer 

Nails 

Cooking  ranges . 
Cotton  ticking.  . 

Glass-ware 

Cutlery 

Cotton  drills.... 
Drugs 

Shoe  pegs 

Lucifer  matches 

Flannels 

Paraffine .... 

Carpenters'  tools 


Total  value. 


$2,949,216 
460,  088 
24,  306 
53,  544 
24,  973 
34,  401 
9,  544 
17,417 
83,  135 

266,  793 
2-J,  287 
120,  746 
196,  436 
33,  488 
190,  013 
556,811 

11,  740 

224, 174 

270,  521 

581,755 

75, 175 


From  the 
United 
States. 


$61,188 

681 

11,993 

40,  042 

2,  709 

1,941 

180 

3,371 

1,500 

108,  330 
8,018 
3,435 
4,599 
1,124 
1,454 
19,  719 

2,519 

20 

155,  404 

545,  734 

12,  090 


Articles. 


Common  soap 

Hope 

AVhite  shirtiufis 

Ticu.serings 

Cotton  bagging 

Canvas  

Railwaj'  materials 

Telegraiih  materials  .. 

Agricultural  machin- 
ery. 

Sewing-machines 

Machinery 

Hardware 

J^iirniture 

Wick 

Writing-paper 

Printing-paper,  supe- 
rior. 

Printing-paper,  ordi 
nary. 

Prints 

Bags 

Chairs 

Calicoes 


Total  value. 


$8,  490 

60,  057 

1,  923,  340 

1,  067,  224 

38o,  506 

3fi, 499 

1,  095,  or.7 

30,  683 

33,  772 

128,  742 
469,  069 

1,  431,  635 
134,213 

34,836 
60,  023 
38,  041 

191, 739 

2.  268,  903 
1, 188,  758 

96,  430 
978,  211 


From  the 
United 
States. 


$2,  646 
14,207 
33, 08:i 
40,  ,532 
141,834 
4,712 
98,391 

2,  78 1 
16,  632 

7,  780 
45,115 
94,  232 
27,57) 

2,290 

3,  5;!3 
2,083 


16, 123 

14,  .308 

27,  131 

119,  749 


SHIPPING   STATISTICS 

The  following  shipping  statistics  show  the  relative  position  of  the 
United  States  flag  to  the  total  tonnage  entered  and  cleared  at  Chilian 
ports  in  1887 : 


Vessels. 


Foreign— 

Sailing  vessels  entered 
Sailing  vessels  cleared 

Steamers  entered 

Steamers  cleared 

Coasting — 

Sailing  vessels  entered 
Sailing  vessels  cleared  . 

Stiainers  entered 

Stu.imera  cleared , 


All  flags. 


No. 
753 
678 
049 
761 

1,784 
1,  768 
i,469 
4,254 


Tont. 
557,136 
581,603 
987,  844 
,100,049 

908,  939 

873,  595 

,  425,  673 

» 287, 613 


United  States  flag. 


A^o. 


Tont. 

27,440 
19,  848 
1,  712 
4,169 

46,  760 

36,  060 

2,401 

826 


62  TRADE    AND    TRANSPORTATION    IJKTWEKN 

The  exports  from  the  United  States  to  Chili  are  likely  to  be  much 
.larger  during  the  present  and  succeeding  years  because  of  a  contract 
recently  awarded  by  the  Government  to  a  firm  of  American  contraetors 
for  the  construction  of  about  750  miles  of  railroad  at  a  cost  of  about 
$15,000,000,  and  it  is  stipulated  that  the  rolling  stock  shall  be  of  the 
American  pattern. 

THE   CHILIAN  LINE   OF   STEAMERS. 

Chili  has  adequate  steam  communication  with  Europe  and  an  excel- 
lent line  of  steamers  of  her  own.  The  South  American  Steam-ship 
Company  (Compania  Sud-Americano  de  Vapores)  is  a  Chilian  organi- 
zation. It  has  a  capital  of  $3,500,000,  which  received  an  annual  com- 
pensation of  $225,000  in  silver,  payable  monthly,  from  the  Govern- 
ment of  Chili,  for  the  transportation  of  mails  between  Valparaiso 
and  Panama,  which  is  a  guarantied  dividend  of  6^  per  cent,  upon 
the  authorized  capital  of  the  company,  or  more  than  10  per  cent, 
upon  the  actual  investment.  The  contract  covers  a  term  of  ten  years, 
and  the  vessels  are  required  to  sail  twice  a  month.  The  fleet  of  the 
company  comprises  eighteen  first-class  steamers,  constructed  in  En- 
gland especially  for  this  service.  Their  tonnage  varies  from  1,200  to 
2,000,  and  their  horse-power  from  1,000  to  1,500.  The  officers  and  en- 
gineers are  mostly  Englishmen  and  Americans.  This  company  was 
organized  to  afford  competition  with  the  vessels  of  the  Pacific  Steam 
Navigation  Company,  which  for  a  long  time  had  a  monopoly  of  trans- 
portation upon  the  west  coast  of  South  America,  and  have  been  effect- 
ive in  reducing  freights  and  passenger  rates  to  reasonable  sums. 

THE  WOOL  PRODUCT   OF   CHILL 

There  are  very  few  products  of  Chili  that  can  be  exported  with  profit 
to  the  United  States;  and  they  are  guano,  nitrate,  and  wool.  The 
same  remarks  that  have  been  made  regarding  the  wool  of  Peru  ap- 
X)ly  to  the  product  of  Chili.  It  does  not  compete  with  the  merino  wool 
of  the  United  States,  but  is  of  a  much  coarser  variety,  and  is  used  ex- 
clusively in  th^  manufacture  of  cari)ets.  The  sheep  growers  of  the 
United  States  do  not  attempt  to  produce  this  wool,  and  therefore  need 
not  be  protected  against  it. 

The  chief  export  of  Chili  to-day  is  nitrate  of  soda,  and  always  will 
be,  as  the  deposits  in  that  country  are  so  great  as  to  be  practically  in- 
exhaustible. The  nitrate  is  not  utilized  in  the  United  States  to  the 
same  extent  as  it  is  in  Europe,  but  will  eventually  become  a  large  arti- 
cle of  exportation  to  our  country.  Experiments  are  being  conducted 
for  the  purpose  of  discovering  some  method  by  which  nitrate  can  be 
utilized  for  fertilizing  material,  and  if  they  are  successful  the  purchase 
of  that  article  in  the  United  States  will  be  much  larger  than  now. 

All  the  guano  now  remaining  on  the  west  coast  of  South  America  be- 
longs to  Chili,  and  it  is  claimed  that  there  is  very  little  left  of  a  high 


THE    UNITE tJ    STATES    AND    LATIN    AJUEKICA.  63 

grade  such  as  was  formerly  shipped  in  large  quantities.  The  Govern- 
ment of  Chili  owns  all  the  guano,  and  contracts  for  its  sale  to  private 
parties. 

Chili  exports  a  great  deal  of  flour,  and  supplies  the  west  coast  of 
South  America  with  that  article. 

HOW    TRADE  MAY  BE   SECURED. 

The  import  trade  of  Chili,  as  has  been  shown,  is  very  large,  and  if 
proper  means  could  be  provided  for  the  shipment  of  goods  the  mer- 
chants of  the  United  States  might  secure  a  large  share  of  it ;  but  before 
any  efforts  can  be  profitably  made  in  this  direction,  some  means  must 
be  devised  of  securing  steam-ship  communication  with  that  country. 
Lower  freights,  quicker  time,  longer  credits,  banking  facilities,  the 
selection  of  goods  suitable  to  the  demaiids  of  this  market,  and  better 
packing  are  all  necessary  elements  in  any  effort  that  may  be  made  to 
build  up  a  trade.  It  is  also  necessary  for  our  merchants  to  have  agen- 
cies or  branch  houses  in  Chili  which  shall  carry  such  stocks  of  goods 
as  shall  enable  their  representatives  to  fill  orders  when  they  are  re- 
ceived. 

Cotton  goods  are  especially  needed  in  Chili,  but  the  American  manu- 
facturers do  not  produce  the  fabric  that  is  demanded  in  that  country. 
The  people  want  a  cheaper  article  than  our  mills  now  produce.  They 
want  the  same  sort  of  fabric  that  they  get  from  Europe,  a  mixture  of 
cotton,  pipe-clay,  and  starch,  which  sells  for  5  cents  a  yard,  while  the 
American  article  approaching  nearest  it  costs  7  cents  a  yard. 

POPULARITY  OF  AMERICAN   GOODS. 

A  recent  article  in  a  New  York  paper  asserted  that  the  reason  our 
cottons  were  not  sold  in  Chili  was  that  our  prices  are  too  high.  This 
IS  not  true.  English  goods  of  the  same  weight  and  texture  sell  for 
quite  as  much  and  often  more  than  those  from  the  United  States.  But 
very  few  of  the  better  class  of  goods  are  sold.  Nearly  all  the  railroad 
supplies  of  Chili  are  furnished  by  the  United  States,  and  were  the  ques- 
tion of  freights  more  in  our  favor  we  should  have  almost  a  monopoly, 
for  there  is  an  entire  concurrence  of  testimony  from  experienced  men  as 
to  the  great  superiority  of  our  engines,  cars,  and  other  supplies,  with  the 
single  exception  of  steel  rails ;  but  the  tedious  delay  in  getting  freight 
from  New  York  gives  our  English  competitors  the  advantage. 

For  all  farm  work  our  machinery  is  preferred  as  it  is  more  conven- 
ient and  better  adapted  to  its  use,  but  there  is  a  complaint  that  it  is 
not  heavy  enough  to  be  handled  by  men  so  careless  and  stupid  as  the 
Chilian  laborers.  It  will  pay  manufacturers  of  agricultural  machinery 
and  implements  to  send  agents  to  Chili  to  study  the  demands  of  that 
market  and  see  wherein  the  goods  they  now  furnish  fail  to  give  satis- 
faction. 


64  TRADE    AND    TRANSPORTATION    BHTWKEN 

American  sewinj:^-machines  are  considered  the  best  by  all  the  mer- 
chants of  Ghili,  and  are  so  good  and  popular  that  the  Germans  have 
driven  them  out  of  the  market  with  cheap  iaiitations.  In  many  other 
articles,  snch  as  paints,  oils,  drugs,  stationery,  and  hardware,  we  can 
compete  with  the  English  manufacturers  even  under  the  present  freight 
disadvantages,  and  there  is  no  doubt  whatever  that  a  large  trade  might 
be  built  up  if  proper  facilities  were  afforded. 

THE   QUESTION   OF  FREIGHTS. 

Freights  via  the  Isthmus  are  so  high  that  few  goods  are  sent  from  the 
United  States  to  Chili,  except  by  sailing  vessels,  or  steamers  via  Eu- 
rope. There  are  two  houses  in  Chili,  branches  of  W.  11.  Grace  &  Co.,  of 
New  York,  and  Ilemmingway  &  Brown,  of  Boston,  who  have  lines  of 
sailing  vessels  arriving  and  departing  with  regularity,  carrying  down 
merchandise  and  taking  back  guano,  nitrate,  and  wool,  but  these  vessels 
are  used  by  the  houses  who  own  them  and  do  not  do  a  regular  transpor- 
tation business. 

The  frequent  complaint  of  the  breaking  of  parcels  and  boxes  on  the 
Isthmus  show  that  New  York  shippers  in  this  item  alone  tind  the  loss 
so  serious  as  to  deprive  them  of  their  x^rofits  on  goods  that  go  that  way. 
The  steamship  lines  of  the  Old  World  are  a  controlling  power  in  direct- 
ing trade,  and  not  only  do  they  offer  low  rates  and  sail  regularly,  but 
discriminate  in  other  ways  in  favor  of  European  merchandise.  Not  one 
of  these  lines  was  started  or  could  ^lave  been  maintained  without  assist- 
ance from  the  government  under  whose  flags  it  sails,  and  if  the  mer- 
chants of  the  United  States  expect  to  compete  with  the  merchants  of 
Europe,  whoever  establishes  steam  communication  must  have  the  same 
amount  of  assistance. 

THE  INTERNATIONAL  COIN. 

The  Government  of  Chili  is  heartily  in  favor  of  the  adoption  of  a 
common  international  coin,  audit  was  the  only  topic  of  the  several  to 
be  discussed  at  the  approaching  Congress  that  was  indorsed  and  ap- 
proved. In  the  conference  that  was  held  between  the  President  and 
his  Cabinet  and  the  South  American  Commission  in  1885,  the  former 
stated  very  frankly  that  his  Government  did  not  care  to  enter  into  a 
reciprocal  treaty  with  the  United  States,  as  he  did  not  see  any  advan- 
tage to  be  derived  from  it. 

There  are  no  customs-house  exactions  to  be  complained  of  in  Chili, 
but  tlie  patent  laws  and  treaties  are  very  defective,  and  the  markets  of 
that  country'  are  flooded  with  fraudulent  goods  of  English  and  German 
make  bearing  the  forged  trade-marks  of  the  manufacturers  of  the  United 
States. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  65 


XIL 

COMMERCE  OF  THE  ARGENTINE  REPUBLIC. 


The  total  foreign  commerce  of  the  Argentine  Republic  in  1888  reached 
the  enormous  amount  of  $280,600,000,  of  which  $172,410,000  represented 
the  imports,  including  $44,000,000  coin,  and  $108,280,000  the  exports. 

Much  of  the  increase  in  1888  represents  railway  material,  of  which 
there  was  imported  the  value  of  $13,600,000  against  $3,500,000  in  1887. 
There  was  a  similar  increase  in  building  materials,  machinery,  and  ag- 
ricultural implements. 

The  progress  of  home  production  in  agricultural  products  is  shown  in 
the  falling  off  of  imports  in  1888  as  compared  with  1887,  as  follows: 
Food  products,  $1,500,000;  wines  and  spirits,  $3,100,000;  tobacco, 
$00,000.  This  falling  off  in  agricultural  products  is  made  up  by  the 
increased  importations  of  manufactures  of  iron,  agricultural  implements, 
and  machinery,  which  increased  in  1888  over  1887  $3,200,000.  The  ex- 
ports, exclusive  of  coin  and  metal,  in  1887  amounted  $84,200,000 ;  and 
in  1888  to  $99,500,000. 

THE  DIVISION  OF  TRADE. 

This  trade  was  divided  among  the  several  foreign  countries  as  fol- 
lows: 

IMPORTS. 

From  England,  inchiding  specie $6:5,700,000 

Germany.... 29, 155,000 

X'"rance , '- 27,7.S1,000 

J3elgium 11,177,000 

United  States 9,934,000 

Italy 7,7:52.000 

Spain 3,902,000 

Prazil 2,428,000 

Urnguay 8,83:5,000 

Paraguay 1,724,000 

Other  countries 5,981,000 

KXPORTS. 

To  France $28,141,000 

'      England 17,697,000 

IJelgiura 10,682,000 

periuauy ,,,,.,.,.,. r,. ,,„.,,„.,,,„,„„,.,.     1:5,246,00Q 

s.i3x,r>i"^a 


6Q  TRADE  AND  TRANSPORTATION  BETWEEN 

To  United  States $6,668,000 

Brazil 4,801,000 

Spain 3,  300,  000 

Italy    ■- 2,734,000 

Uru-uay 7,925,000 

Chili 1,681,000 

Other  countries 6,012,000 

• 

For  some  reason  the  returns  in  detail  for  1888  can  not  be  obtained,  but 
those  of  1887,  so  clearly  analyzed  by  Mr,  E.  L.  Baker,  the  United  States 
consul  at  Buenos  Ayres,  will  give  an  idea  of  the  trade. 

CLASSIFICATION   OF  EXPORTS. 

The  relative  value  of  the  dift'erent  classes  of  exports  of  1887,  com- 
pared with  those  of  188G,  was  as  follows: 


Articles. 


Products  of  the  cattle  industry. 

Atrrit-ultiiral  products 

Industrial  products 

Timber  exported 

Minirals    

Products  of  wild  animals 

Variirus  exports 


1886. 


$52,  003,  347 

8,341,336 

6,  600,  257 

326,  6.'3 

155,  0J9 

351,  OJl 

1,  514,  538 


1887, 


$55,  282, 

21,  257, 

4,  23!», 

277. 

1R6, 

606, 

1,  802, 


Difference. 


678,  755 
915,984 
3611.  323 
148,  679 
*31, 121 
253,  .537 
432, 456 


More. 


t  Less. 


The  wonderful  increase  in  the  exports  of  agricultural  products  as  ex- 
hibited in  the  above  table  is  all  the  more  gratifying,  as  onlj'^  a  few  years 
ago  it  was  generally  proclaimed  that  it  was  impossible  for  the  Argen- 
tine Kepublic  ever  to  be  an  agricultural  or  grain-producing  country. 


EXPORTS   OF  CEREALS. 

The  production  of  cereals  is  getting  to  be  a  most  important  industry, 
the  crops  now  not  only  supplying  the  demands  of  the  home  market, 
which  hitherto  were  supplied  from  abroad,  but  the  surplus  now  every 
year  adds  largely  to  the  aggregate  of  exports.  With  the  annual  in- 
crease  of  an  agricultural  immigration  from  Europe,  it  will  not  be  very 
long  before  the  ])roducts  of  the  farm  will  contend  for  first  place  with 
those  of  the  pastoral  industry. 

In  regard  to  the  exports  of  grain,  the  official  figures  are  as  follows; 

Tona. 
Exports  of  wheat 237,866 

Exports  of  corn 361,848 

Exi)ort8  of  liuKeed 81,208 


The  shipments  to  the  United  Kingdom  were  as  follows : 


Tons. 


Shipment  of  wheat  to  Great  Britain 145,948 

Shipments  of  corn  to  Great  Britain , 177,769 

Shij»ment8  of  Jingepi}  to  Great  Britain.., ^. .,,..     62,975 


THE    UNITED    STATES    AND    LATIN    AMERICA.  67 

INCREASE   OF  AGEICULTUEAL  POPULATljON. 

There  is  a  line  of  steamers  running  from  Genoa  to  Buenos  Ayres 
which  carries  very  little  else  than  passengers,  and  receives  from  the 
Argentine  Government  a  subsidy  per  cai)ita  for  every  immigrant  car- 
ried. Those  immigrants  wlio  choose  to  go  into  the  agricultural  section 
are  given  free  lands  and  seed  and  $6  a  month  for  the  first  j'ear,  or  un- 
til the  first  crop  enables  them  to  become  self-supporting.  There  are 
also  large  numbers  of  people  going  to  the  Argentine  llepublic  from  the 
vast  provinces  of  Spain,  and  quite  a  number  also  from  the  same  local- 
ity to  the  Republic  of  Uruguay,  which  lies  across  the  river  from  the 
Argentine  Republic.  A  large  proportion  of  the  laboring  classes  and 
mechanics  in  both  of  these  countries  are  Spanish  Basques,  and  those 
people  appear  to  find  the  country  and  the  climate  especially  adapted  to 
their  tastes. 

The  rush  commenced  about  1884,  when  they  received  about  100,000 
people  from  Europe,  most  of  them,  as  I  said,  being  Italians  and  Span- 
ish Basques.  In  1886  the  immigration  had  largely  increased,  and  it 
has  been  increasing  rapidly  ever  since,  until  last  year  the  number  of 
arrivals  was  155,000,  and  during  the  six  months  of  the  present  year  the 
arrivals  numbered  150,000.  These  statistics  do  not  look  very  large 
beside  those  given  in  our  own  tables  of  immigration  statistics,  but  it 
must  be  understood  that  in  the  Argentine  Republic  the  population  is 
only  4,000,000,  while  we  have  65,000,000  here. 

AGRICULTURAL  ADVANTAGES. 

The  Argentine  Republic  has  the  advantage  of  having  a  fertile  prairie 
land  near  their  ports,  which  is  easily  cultivated  and  whicli  is  being  de- 
veloped by  the  rajjidly  increasing  population.  Lines  of  railroad  are 
being  built  through  the  country.  The  climate  is  temjierate  and  favor- 
able to  agriculture.  Its  farmers  have  the  advantage  over  those  of  our 
Northwest  in  that  they  can  raise  four  or  five  crops  of  alfalfa  or  clover 
a  year.  Their  stock  does  not  require  shelter,  therefore  they  do  not  have 
to  divert  their  energy  in  harvesting  for  a  long  winter.  Owing  to  these 
special  advantages  they  are  large  producers  of  wool.  They  export  two 
and  a  half  million  hides  per  annum,  which  hides  are  of  the  best  quality 
shipped  from  any  part  of  the  world. 

Fifteen  years  ago  all  the  flour  consumed  in  the  River  Plate  countries 
came  from  the  United  States  and  Chili.  Kow  they  not  only  provide  for 
the  increased  consumption  of  their  own  country,  but  are  exporting 
cereals ;  and  the  wheat  fields  and  corn  farms  of  the  River  Plate  are 
destined  to  rival  in  extent  and  productiveness  those  of  our  own  North- 
west. The  Argentine  Republic  has  this  advantage  in  supplying  bread- 
stuffs  to  Europe :  As  the  wheat  fields  of  the  Argentine  are  near  the 
ports,  and,  owing  to  the  new  railroads  and  a  surplus  tonnage  for  home- 
ward business,  the  freights  on  products  from  the  wheat  fields  of  the 
Argentine  Republic  to  Europe  is  from  20  to  40  per  cent,  less  than  it  ia 


68  TRADE    AND    TRANSPORTATION    BETWEEN 

from  tlie  wheat  fields  of  the  Northwest  to  Europe,  the  preseut  quota- 
tions being  $6  a  ton  from  the  Argentine  Eepublic  and  $9.50  a  ton  from 
Milwaukee. 

THE  WOOL   CLIP. 

"  If  it  be  true,  as  it  is  now  officially  computed,"  writes  Consul  Baker, 
"  that  there  are  100,000,000  of  sheep  in  the  country,  it  will  be  seen  from 
the  amount  of  shipments  that  the  average  yield  is  only  a  little  more 
than  2  pounds  to  the  sheep.  And  this  is  wool  in  the  dirt,  two-thirds 
of  it  being  dirt  and  one-third  of  it  being  wool.  In  other  words,  taking 
the  shipments  of  1887  as  the  average  annual  product  of  the  country,  it 
is  about  75,000,000  pounds  of  washed  wool. 

"  The  shipments  to  the  United  States  were  exclusively  of  the  long 
carpet  wools  from  Cordoba,  it  being  the  only  class  that  it  is  possible  to 
send  to  our  market  under  our  tariff  law  with  profit.  Our  tariff,  so  far 
as  the  clothing  and  finer  qualities  are  concerned,  is  prohibitive.  While 
those  from  Australia  come  in,  those  from  the  Argentine  Eepublic,  owing 
to  the  greater  amount  of  grease  and  dirt  they  contain,  are  quite  ex- 
cluded, our  tariff  law  making  no  allowance  or  reduction  whatever  for 
such  excess.  I  referred  at  length  to  this  discrimination  against  the 
Argentine  Eepublic  in  fiivor  of  Great  Britain  in  my  annual  report  of 
1886.  It  appears  that  the  amount  of  dirt  and  grease  in  the  wools  of 
the  Argentine  Eepublic  reaches  to  more  than  70  per  cent.,  while  the 
wools  of  Australia  and  New  Zealand  have  only  about  50  per  cent.  In 
other  words,  while  the  average  yield  of  Argentine  wools  scoured  is 
only  30  per  cent.,  that  of  the  other  countries  named  is  50  per  cent." 

"  If,  as  I  have  heretofore  remarked,"  continues  Consul  Baker,  "  the 
mills  of  the  United  States  did  not  use  foreign  clothing  wools  at  once,  this 
would  make  no  difference.  The  discrimination  would  be  of  no  practical 
significance.  But  they  do  use  foreign  wools,  and  just  such  classes  of 
clothing  wools  as  the  Argentine  Eepublic  can  furnish ;  and,  owing  to 
the  more  intimate  trade  relations  which  we  are  striving  to  cultivate  with 
the  latter  country,  we  should  avoid  the  appearance  of  favoring  other 
nations  to  the  prejudice  of  the  Argentine  Eepublic." 

A  BOUNTY  ON  EXPORTS  OF  BEEF. 

The  Argentine  Eepublic  has  recently  passed  a  law  granting  a  bounty 
on  the  export  of  dressed  beef.  It  is  in  the  form  of  a  guaranty  of  5 
l)cr  cent,  for  ten  years  on  the  capital  of  companies  formed  for  that  pur- 
pose, the  total  capital  of  such  companies  being  limited  to  $8,000,000  iu 
gold. 

Under  the  regulations  it  appears  that  the  entire  amount  to  be  guar- 
antied shall  not  exceed  $8,000,000  of  national  money  ;  that  parties  ap- 
plying for  the  guaranty  for  any  imrticular  establishment  must  give  full 
details  as  to  owners,  the  form  of  operation,  the  amount  invested,  the 
quantity  of  meat  it  is  proposed  to  export  annually,  estimates  of  coats 
per  ton,  etc.;  that  all  applications  for  the  benefit  of  the  law  must  be 
made  to  the  minister  of  finance  j  that  the  largest  amount  of  capital 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


69 


guarantied  in  any  one  establishment  will  bo  $1,000,000  and  the  small- 
est $500,000 ;  that  when  two  or  more  parties  ask  for  the  guaranty  in 
the  same  district  the  wants  and  particular  circumstances  of  the  district 
will  bo  taken  into  account,  so  as  to  make  the  privilege  as  extensive  as 
l)0ssible;  that  where  an  application  is  granted  the  petitioners  must 
deposit  the  sum  of  $5,000  in  the  national  bank  as  a  guaranty  of  good 
iaith  on  their  part ;  that  all  establishments  which  come  under  the  guar- 
anty must  present  a  quarterly  account  of  operations  ;  that  a  board  of 
inspectors  shall  be  appointed  to  supervise  them. 

REFRIGERATOR   SHIPS  READY  FOR  THE  TRADE. 

Consul  Baker  reports  several  establishments  are  now  preparing  to 
take  advantage  of  the  guaranty  thus  provided  by  the  Government,  and 
that  they  are  going  into  the  export  of  fresh  beef  on  a  very  large  scale, 
with  special  steamers  duly  fitted  up  with  all  necessary  machinery  for 
freezing  and  stowing  their  cargoes.  They  will  have  warehouses  both 
in  England  and  France  for  receiving  and  marketing  the  beef.  The 
average  time  of  passage  of  these  steamers  will  be  about  twenty-five 
days.  It  is  hardly  necessary  to  add  that  the  Argentines  are  expecting 
wonders  from  the  benefits  which  these  bounties  will  confer  upon  the 
cattle  industry  of  the  country,  and  are  already  anticipating  that  it  will 
now  take  a  new  departure  of  prosperity. 

"How  far  the  Argentines  will  be  able  to  interfere  with  the  fresh  beef 
shippers  of  the  United  States  remains  to  be  seen ;  but,  until  new  meth- 
ods are  adopted  here  for  the  preparation  of  beef  for  exportation,  I  do 
not  think  that  the  law  will  produce  any  great  competition.  At  present 
what  is  known  as  stall-fed  cattle  are  quite  unknown  in  this  countrj^ ; 
all  bullocks  for  the  market  are  taken  directly  off"  the  grass,  and,  of 
course,  the  meat  is  soft  and  watery.  Until  they  discover  that  such 
meat  will  not  bear  profitable  exportation,  and  learn  that  dry  food  is 
absolntely  necessary  in  order  to  prepare  fresh  meat  for  foreign  markets, 
especially  for  the  long  distance  which  it  has  to  be  transported,  I  doubt 
if  the  present  movement  of  the  Argentine  Government  for  a  5  per  cent, 
guaranty  on  the  exports  will  have  any  perceptible  effect  upon  the  cat- 
tle business  of  the  United  States." 

ARGENTINE  TRADE  WITH  GERMANY. 

The  recent  development  of  the  trade  with  Germany  is  attracting  gen- 
eral attention.    Its  extent  will  appear  from  the  following  table : 


Year. 

Imports. 

Exports. 

Total. 

1880    

$2,  365, 152 

3,  527,  570 

4,  764,  622 

7,  028,  051 

8,  868, 930 

7,  262,  999 

8,  04-1,  875 
12,  108,  456 
29, 115,  000 

$2,  541,  828 
4,  004,  887 
4,  803,  951 
4,  823, 827 
6,  81.3,  713 

8,  512, 443 
C,  950,  908 

9,  835,  754 
13, 246,  000 

$4,906,980 

1881 

7,  532,  457 

1882 

9,  568,  584 

1883 

11,  851,  878 

1884 ...           

15,  682,  643 

1885.. 

1.5,  77i>,  442 

1886 ..                

14,  59.5,  783 

1887 

21,  944,  210 

1888 

42,  351,  000 

70 


TRADE  AND  TRANSPORTATION  BETWEEN 


This  increase  is  iu  great  part,  if  not  entirely,  Mr.  Baker  reports, 
owing  to  the  trade  metlioils  which  Germany  some  time  since  adopted 
with  reference  to  the  Argentine  Republic,  being,  indeed,  exactly  those 
which  years  ago  I  suggested  for  the  adoption  of  our  own  country,  to 
wit:  First,  quick  and  regular  steam  communication  between  the  two 
countries;  second,  the  establishment  of  branch  houses  here  interested 
in  the  sale  of  German  manufactures,  and,  third,  the  opening  of  a  Ger- 
man-Argentine bank  in  this  city  to  facilitate  exchange,  etc.  The  lines 
of  goods  imported  from  Germany  during  1887  were  as  follows: 


Articlea. 


Comestibles  and  groceries. - 

Ijiquors 

Tobacco 

Woven  goods 

Drugs  and  clicinicals 

"VVoodiu  ware,  furniture,  etc 
Paper ^ 


Value. 


$1, 157,  204 
686,  585 
157,  834 
4,  5:50,  674 
604,  262 
C:i7,  247 
724,  314 


Articles. 


Mannfactnres  of  iron.. 

Jewelry,  etc 

Crockery  and  glassware 
other  imports 

TaftuJ  imports 


Value. 


$1,  252, 630 

359,  593 

628,  230 

1,  379,  883 


12, 108, 456 


Included  in  these  imports  are  16,725  sewing-machines  and  1,074 
pianos. 

ARaENTINE   TRADE  WITH  BELGIUM. 

While  the  trade  returns  with  Belgium  show  a  gradual  decrease  in 
the  volume  of  exports  to  that  country,  there  has  been  a  progressive  in- 
crease in  the  amount  of  imports  from  there.  These  in  1880  amounted 
to  only  $2,483,105  ;  in  1887,  they  amounted  to  $10,947,955,  and  iu  1888 
to  $11,117,000.  On  the  other  hand  the  exports,  which  in  1880  reached 
to  $14,350,458,  amounted  to  only  $12,111,531  in  1887.  The  total  volume 
of  trade,  however,  which  amounted  to  $16,839,565  in  1880  has  now 
reached  to  $27,799,000.     The  following  are  the  imports  of  1887  : 


Articles. 


Groceries  and  comestibles 

Liquors 

Woven  goods,  etc 

Paper 

Iron  and  iron  goods 

Chemicals 


Value. 


$1,  60S,  669 
474,  356 

1,  052,  007 
.')03,  084 

3,  •74,  786 
188,  373 


Articlea. 


Boots  and  shoes 

Stone,  glassware,  etc 
All  other  articles  ... 

Total 


Value. 


$373, 084 
952,  402 
830, 194 


10,  947, 955 


Among  the  imports  were  13,198  tons  of  iron  beams  and  joists,  amount- 
ing to  $527,928,  articles  which  are  here  rapidly  superseding  the  use  of 
timber  in  house-building.  In  the  item  of  woven  goods  is  included  ready- 
made  clothing,  which  amounted  to  $482,971. 


THE   UNITED    STATES   AND   LATIN   AMERICA. 


71 


ARGENTINE  TRADE  "WITH  FRANCE. 

The  trade  of  the  Argentine  Republic  with  France  shows  a  most 
wonderful  progression,  the  amount  having  more  than  doubled  in  the 
last  ten  j^ears,  while  the  imports  have  more  than  trebled.  I  give  the 
figures  below. 


Tear. 

Imports. 

ExportB. 

ToUl. 

1880 

$8,  292,  872 
10,  279,  793 
12, 180,  824 
15,418,997 

16,  785,  590 
14,  54.5,  193 

17,  002, 038 
22,  743,  550 
27,  781,  000 

$10,10.3,202 
16,  654.  403 
16,  398,  992 

21,  041,  495 
22,518,371 
24,  164,  S29 

22.  342,  183 
24,  871,  354 
28, 141, 000 

$24,  396, 104 

1881 

26,934,196 

1882 

28,585,816 

1883 

36,  460,  492 

1884 •■ 

39,  303,  961 

IJ-So 

30,710,024 

1886 

39.  344,  221 

1887 

47,  614,  904 

1888 

55, 922.  OUO 

The  imports  of  1887  consisted  of  the  following  lines  of  goods  : 


Articles. 


Groceries  and  comestible? 
Wines  and  other  liquors.. 

Woven  goods 

Ready-made  clothing 

Chemicals,  etc 

Furniture 


Value. 


$3,154,771 
6,  825,  544 
3, 172,  902 
2,  079,  555 
971,  705 
542,  597 


Articles. 


Paper  etc 

lion  ware..... 

Jewelry 

other  imports 

Total  ... 


Value. 


$470, 781 
1, 058.  012 
1, 463,  085 
3,  993,  298 


22,  743,  550 


ARGENTINE  TRADE  WITH   GREAT  BRITAIN. 

If  the  trade  with  France  shows  a  remarkable  progression,  that  with 
England  presents  a  still  more  surprising  increase.  In  the  last  eight 
years  it  has  quadrupled,  since  from  $i7,272,193  in  1880,  it  has  reached 
to  $51,864,220  in  1887,  and  $81,397,000  in  1888.  In  1880  the  imports 
from  Great  Britain  amounted  to  only  $12,103,400;  in  1887  they  were 
$34,779,211 ;  in  1888,  $63,700,000.  In  1880  the  exports  to  Great  Britain 
were  $5,168,732 ;  in  1887  they  were  $17,085,001,  and  in  1888  $17,697,000. 
The  imports  from  Great  Britain  were  as  follows : 


Articles. 


Live-stock 

Groceries  and  comestibles 

Liquors 

Woven  floods  

Eoady-niade  clotbind 

Chemical.s  and  drugs 

Furniture 

Paper 


Value. 


$200, 160 

1,  297,  330 

470,  556 

12,  50,5,  481 

2, 1.50, 035 

1,227,  134 

2-J7,  587 

328,  890 


Articles. 


Boots  and  shoes 

Iron  and  iron  utensils  ... 

Jewelry,  etc 

Glass  and  crockery  ware 

Stone  coal 

All  other  imports 

Total  imports 


Value. 


$304,  54a 

10,  088,  224 

515,717 

860,  516 

3,  854,  422 

762,  620 


34,  779,  219 


72 


TRADE    AND    TRANSPORTATION    BETWEEN 
ARGENTINE   TRADE   WITH  THE   UNITED   STATES. 


The  trade  with  the  United  States  has  grown,  l)ut  not  in  these  propor- 
tions.   The  following  are  the  returns : 


Year. 

Imports. 

Exports. 

Totel. 

1880     .a 

$3,  224, 743 
4,268,110 
5,  094, 764 
4, 933,  054 
7,  454, 832 
7,006,719 
7,  673,  284 

11,004,553 
9.  934, 000 

$5, 126,  440 
4,  035,  714 

2,  956,  582 

3,  510,  574 

4,  064,  848 

5,  563,  841 
3,  580,  406 

5,  938,  808 

6,  668,  000 

$8, 351, 183 
8.  323,  824 

1881 

1882       

8,  051,  346 
8,  443,  628 

1883 

1884 

11,519,680 

1885 

12,  570,  .560 

1886 

11,253,690 

1887 

16,  943, 361 

1888 

16, 602, 000 

"  Considering  how  unfortunately  our  export  trade  is  handicapped," 
writes  Consul  Baker,  "  in  lacking  all  the  facilities  for  a  close  and  inti- 
mate intercommunication,  without  steam-ship  lines,  without  banking  ad- 
vantages, without  distinctive  American  business  houses  here,  the  returns 
for  the  last  year  are  very  satisfactory.  The  wonder  is  that  the  figures 
are  so  large.  While  it  can  not  be  said  that  the  trade  presents  any  new 
features,  yet  it  shows  a  very  considerable  increase  in  its  proportions; 
and  while  the  great  bulk  of  our  shipments  to  the  river  Plate  still  con- 
sists of  crude  articles  and  raw  materials  of  prime  necessity  which  can 
not  be  obtained  in  other  markets,  the  returns  show  the  beginning  of  a 
trade  in  other  lines  of  goods,  which  promises  better  things  for  the 
future." 

The  following  table  presents  a  comparison  of  the  shipment  of  leading 
articles  for  the  last  four  years  : 


Articles. 


Turpentine 

Starch 

Afiricultnral  implements.. 

Lamps  and  gas-nxtures 

Lumber 

Furniture 

Cotton  floods 

Hardware,  etc 

Lard 

Kerosene 

Railway  machinery,  etc 

Dmgs,  chemicals,  etc 

Hempen  and  woolen  goods 
Tobacco,  etc 


$34, 

49, 
136, 

66, 
,817, 

92, 
178, 
240, 

40, 
866, 
834, 

62, 
189, 
208, 


1885. 

1886. 

$25, 152 

$48, 933 

45,  438 

41,071 

611,002 

4,55,  4.50 

80,  590 

69,  404 

3,  453,  719 

3,  352,  620 

129,  792 

289,  246 

200,  697 

238,  716 

226, 073 

542, 824 

33,  731 

55,  958 

341,891 

707,  220 

392,119 

165,  020 

82,  224 

342, 658 

165,  534 

417, 207 

98,  542 

77,  856 

1887. 


$110,546 
42,  879 

580,  891 
70,  ,508 

6,  117,  847 
248,  396 
36C,  695 
.562, 447 
150,210 

1,109,  .540 
248,  940 
360,  118 
171,455 
100,  703 


THE  INCREASE  IN  OUR  EXPORTS. 

It  will  bo  observed  that  the  great  increase  in  our  exports  has  been 
in  lumber  and  kerosene,  the  articles  for  which  the  Argentine  Republic 
is  entirely  dependent  upon  the  United  States;  but  the  steady  growth 
of  our  trade  in  agricultural  implements  and  machinery  is  deserving  of 
notice.  The  increase  in  these  lines  is  entirely  owing  to  the  fact  that 
we  furnish  far  better  or  more  serviceable  articles  than  can  be  obtained 


THE    UNITED    STATES    AND    LATIN    AMERICA.  73 

in  the  markets  of  Europe;  and,  after  trial,  ours  are  forcing  themselves 
upon  the  attention  of  this  country  in  spite  of  the  fact  that,  owing  to 
superior  finish  and  style,  it  may  cost  a  little  more  to  put  them  down 
here. 

"  The  increase  which  we  have  seen  in  the  trade  between  the  United 
States  and  the  Argentine  Republic  is  not  the  result  of  any  of  the  modern 
methods  usually  adopted  for  the  promotion  of  international  commerce. 
On  the  contrary,  whatever  development  there  is  has  taken  place  in  spite 
of  the  fact  that  we  are  entirely  lacking  in  all  the  facilities  now  employed 
by  the  commercial  nations  of  the  world  for  the  establishment  and  main- 
tenance of  trade.  After  many  years  of  persistent  discussion,"  writes 
Mr.  Baker,  "we  are  still  as  far  as  ever  from  even  the  prospect  of  steam 
navigation  with  the  Argentine  Republic.  Not  a  single  regular  merchant 
steamer  arrived  here  from  the  United  States  during  the  past  year,  and 
our  trade  continues  to  be  dependent  upon  the  slow  and  uncertain  me- 
dium of  sailing  vessels.  We  are  still,  also,  without  any  proper  bank- 
ing facilities  with  the  Argentine  Republic.  All  our  exchange  and  com- 
mercial business  continues  to  be  transacted  through  English  banking 
houses,  thus  increasing  the  charges  and  complicating  the  settlement  of 
balances.  And  worse  than  all,  as  I  have  already  stated,  we  are  quite 
without  distinctive  American  importimg  houses  in  this  city,  our  entire 
trade  being  thus  made  to  depend,  not  upon  our  ability  to  supply  any 
given  line  of  goods,  but  upon  the  question  whether  it  will  not  pay  the 
importing  merchants  better  to  buy  an  inferior  article  in  Europe  rather 
than  a  superior  one  in  the  United  States." 

AMERICAN  SAMPLE  HOUSES. 

"The  American  sample  houses,  which  have  been  lately  established 
here,  are,  I  believe,  doing  very  well,  and  exhibit  no  little  energy  and 
enterprise  in  pushing  our  manufactures.  Indeed,  it  is  in  part  owing  to 
their  eflbrt  to  procure  orders  that  our  imports  during  the  last  year  have 
footed  up  so  well,  but  it  is  a  fact  that  there  is  at  the  present  time  but  a 
single  distinctive  American  importing  house  in  the  city  of  Buenos 
Ayres.  There  are  a  number  of  large  and  wealthy  firms  that  are  doing 
an  immense  business  with  the  United  States,  and  probably  ofler  our 
goods  on  the  best  terms  possible  ;  but  they  are  either  English  or  Ger- 
man houses,  whose  most  intimate  connections  are  with  Europe,  and 
which  do  business  with  the  United  States  simply  because  it  pays  them 
well  to  do  so." 


74 


TRADE    AND    TRANSPORTATION    BETWEEN 


WHY  WE   ARE   SO   FAR  BEHIND. 

The  reason  why  tbe  United  States  is  so  far  beliintl  in  the  trade  of  the 
Argentine  Republic  is  found  in  the  following  table  for  1887: 
Arrivals  and  departures  from  each  country. 


To  and  from — 


Arriv.ils. 


Sailing  vessels. 


steamers. 


Germany  

Asia 

West  Indies  . 

j;(li;iiiBi 

J!i;i/.il 

Canada 


Chili 

Spain 

United  States. .. 

France 

Norway  

Paiaj;nay 

Glial  llritain... 

Sweden 

Uruguay  

Iialy 

I'ortusal 

Other  Countries. 

Total 


No. 
41 

4 
31 
92 
44 

48 

310 

9(i 

7 

247 

602 

1 

4,  030 

20 

2 

42 


Tons. 

17,  861 

2,620 

934 

13,  827 

18,956 

28,  043 

529 

22,  517 

198, 671 

39,  370 

3,689 

14,219 

333,  719 

■^9 

294,910 

8,461 

1,505 

6,181 


No. 
151 


130 
184 


3 

43 

7 
172 


1,  269 
363 


4,186 


5,  694       1, 010,  731 


6,607 


Tang. 
211,211 


148,  020 
30,  990 


3,758 

53,  170 

6,  762 

264,  968 


391,  217 
725, 333 


1,401,948 
163,893 


3,  460,  870 


The  statistics  of  the  arrivals  and  departures  of  sailing  vessels  and 
steamers  at  the  ports  of  the  Argentine  Republic  show  that  of  the  5,094 
sailing  vessels  arriving  but  74  belonged  to  the  United  States,  and  of 
the  sailing  vessels  departing  but  GO  belonged  to  the  United  States ;  the 
difference  of  14  representing  the  number  of  sailing  vessels  which  were 
sold  upon  their  arrival  there. 

THE  STEAMERS  OF  ALL  NATIONS  BUT  OURS. 

But  the  most  significant  fact  is  that  in  the  table  of  statistics  showing 
the  nationality  of  steamers  the  United  States  is  blank.  Not  one 
steamer  bearing  the  flag  of  the  United  States  arrived  at  or  departed 
from  the  ports  of  the  Argentine  Republic  during  the  last  year.  Buenos 
Ayres  is  connected  with  Europe  by  seventeen  different  steam-ship  com- 
panies, controlling  twenty-three  different  lines.  The  transatlauticliues 
are  as  follows : 

From  France : 

Les  Messageries  Maritimea. 
Lea  Chargenrs  R6unis. 
Lert  Transports  Maritimes. 
La  ligne  CyprioTi  Fabre  et  Cie. 
Allan  Line. 

From  England : 

The  Royal  Mail. 

Allan  Line. 

Houston  &  Co. 

Lamport  &  Holt. 

The  Waliord  Line. 

The  Pacific  Steam  Navigation  Co. 

lies  Ghargcurs  R<iunis. 


From  Italy : 

The  Rubattino  Co. 

Tlie  Yeloce. 

Tlie  Navigazione  Geuerale. 


From  Spain : 

La  Linea  EspaDola. 

The  Marquis  de  Campo's  Line. 


From  Germany : 

The  Nord  Deutscber  Lloyd. 
The  Siid-Amerioaniache. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  75 

During  the  last  year  G62  sailing  vessels  arrived  at  Buenos  Ayres  from 
Great  Britain,  which  is  about  13  a  week,  and  3G3  steamers,  or  one 
for  every  day  in  the  year  except  Christmas  and  New  Year's.  Two 
hundred  and  twenty-one  steamers  left  the  Argentine  Republic  for  France 
during  the  same  year,  and  140  for  Germany,  but  only  7  steamers  ar- 
rived from  the  United  States,  and  they  were  all  tramps,  representing 
only  6,162  tons. 

Nearly  every  one  of  the  lines  of  steamers  mentioned  above  are  sub- 
sidized by  the  Governments  under  whose  flag  they  sail,  and  before 
the  end  of  the  present  year  there  will  be  at  least  three  more  lines  estab- 
lished. The  travelers  and  shippers  in  Europe  always  have  the  choice 
of  seven  or  eight  steamers  a  week  for  the  Argentine  Republic,  but  there 
is  no  way  to  get  there  from  this  country  except  by  way  of  Europe  or 
by  the  Brazil  line,  which  sails  from  New  York  once  a  month.  This  is  a 
very  strange  situation  when  we  consider  the  fact  that  the  arrivals  at  the 
port  of  Buenos  Ayres  last  year  included  6,607  steamers,  which  is  127  a 
week,  or  18  a  day.  It  is  doubtful  whether  as  many  steamers  arrive  at 
the  port  of  New  York  or  Liverpool,  and  Buenos  Ayres  is  thus  placed 
in  the  front  rank  of  the  maritime  cities  of  the  world. 

A  TERY  CLEAR   CASE. 

The  reason  for  the  commercial  estrangement  between  the  United 
States  and  the  River  Plate  is  thus  very  plain.  Trade  is  necessarily 
dependent  upon  transportation  facilities,  and  the  cheaper  and  more 
convenient  the  greater  the  stimulus  to  commerce.  The  company  that 
gives  the  lowest  rates  gets  the  largest  cargo.  This  is  the  reason  why 
the  three  great  commercial  nations  of  Europe  enjoy  a  monoi^oly  of  the 
South  American  carrying  trade,  and  it  is  divided  between  them  in  pro- 
portion to  the  encouragement  the  respective  Governments  have  given  to 
capitalists  to  furnish  transportation  facilities.  Having  produce  to  sell 
and  produce  to  buy  England,  France,  Germany,  Spain,  and  Italy  have  had 
the  wisdom  and  prudence  to  encourage  private  capital  by  government  aid 
to  furnish  the  ways  and  means  necessary  to  transact  the  business.  Even 
the  little  7  per  cent,  of  its  imports  which  the  Argentine  Republic  takes 
from  the  United  States  is  carried  to  that  country  in  foreign  ships.  New 
York  is  nearer  to  the  ports  of  Argentine  than  Europe,  but  our  total 
trade,  imports  and  exports,  amounted  to  only  $12,544,712,  because  Eng- 
lish, French,  German,  Spanish,  and  Italian  steamers  are  so  heavily  sub- 
sidized that  they  can  control  freights. 

'     THE  HOUSTON  CONTRACT. 

Last  year  the  Argentine  Government  entered  into  a  contract  with 
Mr.  Robert  P.  Houston,  of  England,  by  which,  according  to  an  English 
newspaper  which  I  quote : 

The  latter  agrees  to  construct  ten  steamers  of  at  least  4,000  tons  burden  and  16  knots 
per  bottr  eaeb,  to  ply  between  the  north  of  Europe  and  the  ports  of  the  Argentine  Re- 


76  TRADE    AND    TRANSPORTATION    BETWEEN 

public,  and  four  steam  launclies  for  fmij^rant  service  in  Europe.  Also  four  steamers 
to  ply  between  the  United  States  and  the  ports  of  the  Argentine  Republic. 

The  principal  conditions  of  the  agreement  are  the  following :  The  Government  of 
the  Argentine  Republic  gnaranties  a  loan  of  5  per  cent.  i>ev  annum  on  $5,750,000  for 
the  European  service,  and  5  per  cent,  per  annum  on  $1,800,000  for  the  United  States 
lino.  The  contractor  for  the  European  service  agrees  that  these  steamers  shall  always 
flj'  the  flag  of  the  Argentine  Republic,  and  that  in  case  of  war  the  Government  shall 
have  the  option  of  buying  them  at  a  sum  not  greater  than  their  original  cost.  Ex- 
ceptionally good  accommodations  are  to  bo  provided  for  emigrants,  who  shall  come 
from  England,  Sweden,  Norway,  Germany,  Denmark,  Netherlands,  Belgium,  France, 
and  any  other  country  indicated  by  the  Argentine  Government. 

In  case  the  revenues  of  the  contracting  company  exceed  5  per  cent,  it  will  refund 
to  the  Government  from  this  excess  the  sums  which  it  has  received  as  guaranties,  and 
in  case  the  revenues  reach  10  per  cent,  the  excess  is  to  be  divided  between  the  Gov- 
ernment and  the  company.     The  guaranty  terminates  at  the  end  of  eighteen  years. 

It  is  stipulated  that  in  going  from  Europe  the  steamers  must  not  call  at  any  port 
except  Montevideo  and  places  where  it  is  customary  to  take  coal,  but  on  the  return 
trip  they  may  call  at  anj'  port.  One  of  the  steamers  must  arrive  in  the  Argentine  Re- 
public at  least  once  a  week.  Passengers  and  freight  rates  are  to  be  fixed  by  an  agree- 
ment between  the  Government  and  the  corai)any.  The  company  also  agrees  to  furnish 
each  steamer  with  a  refrigerator  capable  of  holding  at  least  throe  thousand  dressed 
Kheep  or  an  equivalent  amount  of  beef.  The  service  will  commence  in  February 
next,  and  by  the  following  November  all  the  steamers  must  be  running. 

The  United.States  service  will  be  performed  imder  very  similar  conditions  as  the 
European  service,  except  that  this  service  will  begin  within  six  months  from  Jan- 
uary last,  and  that  no  refrigerators  are  reqnired  to  be  placed  on  these  vessels. 

For  some  reason  which  has  not  been  explained  Mr.  Houston  has 
failed  to  carr  y  out  his  contract,  but  it  is  said  that  he  expected  to  secure 
an  additional  su  bsidy  from  the  United  States  when  he  undertook  this 
contract. 

COST   OF   MAINTAINING   A  LINE. 

It  is  estimated  by  those  familiar  with  the  cost  of  maintaining  a  line 
of  steamers  between  the  United  States  and  the  Argentine  Kepublic 
that  a  subsidy  of  $20,000  for  each  round  trip  would  bo  necessary  to  se- 
cure them  against  loss.  The  Argentine  Kepublic,  with  only  a  popula- 
tion of  4,000,000,  would  be  willing  to  pay  half  of  this  sum  if  the  United 
States  Government  will  pay  the  other  half. 

OFFER   OF  THE  ARGENTINE   GOVERNMENT. 

The  Argentine  Government,  understanding  the  importance  of  a  line 
of  steamers  between  this  country  and  the  United  States,  and  anxious 
lot  contribute  to  its  establishment,  issued  a  decree  so  far  back  as  1865 
granting  a  subsidy  of  $20,000  a  year  to  the  first  line  that  would  solve 
the  problem.  This  sum  not  being  found  adequate  to  meet  the  expenses 
of  a  regular  line  of  steamers,  at  least  until  the  traffic  between  the  two 
countries  had  assumed  larger  proportions,  the  law  remained  a  dead 
letter.  During  the  administration  of  General  Sarmieuto  the  matter 
was  again  taken  into  consideration  without  its  leading  to  any  results, 
and  it  was  only  during  the  last  year  of  the  presidency  of  Dr.  Avellaneda 


THE    UNITED    STATES    AND    LATIN    AMERICA.  77 

that  an  American  company  volunteered  to  make  a  contract  to  establish 
monthly  steamers  against  a  subsidy  of  $100,000  a  year.  The  executive 
power  sent  a  message  to  Congress  to  this  effect,  but  it  was  never  dis- 
cussed ;  the  actual  President,  General  Koca,  renewed  its  request  to  Con- 
gress, which  is  still  in  abeyance. 

STKAM-SIIir   COMMUNICATION   WITH   THE    UNITED   STATES. 

Translated  troni  the  luossago  of  the  executive  power  iu  1879  to  tbe  National  Congress  of  the  Argen- 
tine llepublic.J 
To  the  honuiiihh'  National  Congress  : 

It  was  always  a  jMsrsistciit  design  of  the  public  powers  of  the  nation  to  establish 
the  direct  navij^atiou  between  the  ports  of  the  llepublic  and  the  United  States,  in 
order  to  thus  complete  our  system  of  exterior  comnuuiicatiou. 

In  18(55  the  Congress  passed  a  law  granting  a  subsidy  for  this  object. 

The  President,  Sarmiento,  announced  in  one  of  his  annual  messages  that  this  sub- 
sidy would  at  last  be  applied,  and  the  actual  administration  renewed  for  two  years 
this  business,  asking  Congress  to  augment  th^  subsidy  granted,  and  which  had 
proved  insufiQcient,  when  all  was  suspended,  because  the  company  that  has  under- 
taken this  enterprise  could  not  obtain  from  the  United  States  Senate  the  pecuniary 
auxiliary  that  was  indispensable  for  its  attempt. 

For  the  first  time,  after  an  expectation  so  long  delayed,  a  responsible  company  di- 
rected by  the  fiim  that  constructs  vessels  of  the  best  reputation  in  the  United  States, 
and  it  has  conditions  to  realize  the  communication  that  has  been  sought  with  so 
much  reason. 

The  executive  power  considers  it  useless  to  dilate  on  the  considerations  upon  the 
advantages  of  a  direct  communication  with  the  most  powerful,  commercial,  and  free 
nation  that  has  best  realized  the  forms  of  government  that  we  have  accepted,  follow- 
ing ])recisely  its  example.  This  other  market  that  opens  itself  is  a  new  interchange 
for  the  men,  the  ideas,  and  the  products. 

But  the  conditions  of  the  enterprise  are  onerous,  and  the  executive  power  complies 
with  its  duty  in  submitting  to  the  honorable  Congress  in  order  that  it  resolve  itself 
upon  the  subject. 

The  enterprise  asks  10,000  francs  monthly,  and  the  maintaining  of  this  subsidy  for 
ten  years.  After  divers  conferences  with  the  minister  of  the  interior  it  has  reduced 
its  conditions  to  100,000  francs  per  annum,  the  subsidy  lasting  seven  years. 

The  executive  power  incloses  with  this  message  all  the  antecedent  writings  of  the 
business. 

May  God  guard  the  honorable  Congress  of  the  nation. 

N.    AVELLENADA. 
B.  LORRILLA. 
PROPOSITION   OF   THE   COMPANY. 

The  Argentine  Government,  in  view  of  the  services  which  this  line  lends,  that  will 
be  the  iirst  step  in  uniting  the  Republic  with  the  grand  North  American  Continent, 
will  pay  to  Messrs.  John  Roach  &  Son  the  sum  of  $S,000 — eight  thousand  hard  dollars, 
gold — for  every  round  voyage  for  the  term  of  eight  years,  paid  on  the  return  of  each 
steamer  from  the  round  trip,  with  a  corres[>onding  receipt  from  the  administration  of 
post-ofhces  on  its  having  duly  delivei'ed  the  mails. 

The  steamers  will  be  subject  to  the  laws  and  ordinances  that  exist  in  the  Republic 
for  steam-packets;  they  shall  carry  the  correspondence  of  the  Argentine  Republic  to 
whatever  point  at  which  they  touch  without  any  remuneration  ;  making  a  rebaie  of 
3oJ  per  cent,  in  prices  of  passage  of  the  immigrants,  and  50  per  cent,  on  the  passage 
of  each  employ6  of  the  Government  who  can  justly  show  that  his  voyage  is  on  ac- 
count of  the  Government.  They  will  also  make  a  rebate  of  25  per  cent,  on  whatever 
ffeiglit  tUejr  na^y  carry  pu  heUi^lf  of  tUe  Gpverowettt,  such  aa  materials  of  war,  etc, 


78  TRADE    AND    TRANSPORTATION    BETWEEN 

MESSAGE   OF  THE   PRESIDENT. 

Translation  from  tho  message  of  tbo  executive  power  to  honorable  National  Congress  of  the  Argen- 
tine Republic,  1882.] 

To  the  honorable  Congress  of  the  na  ion  : 

Our  commerce  with  the  United  States  of  North  America  has  taken  a  favorable  de- 
velopment that  it  is  convenient  to  encourage  by  menus  of  the  establishment  of  a  reg- 
ular line  of  communication. 

This  necessity  has  been  felt  since  some  time  past,  and  a  law  of  1S65  destined  the 
sum  of  |i'20,0U0  (fuertes)  to  subsidize  the  first  line  of  steamers  that  was  established 
between  the  ports  of  Buenos  Ayres  and  New  York.  Tho  executive  power  does  not 
believe  it  necessary  to  enlarge  in  considerations  upon  this  subject,  that,  if  promjitly 
favored,  is  bound  to  influence  in  a  most  powerful  manuer  the  national  commerce. 

The  interests  of  our  country  will  be  benefited  by  a  more  intimate  contact  with  the 
great  producing  and  manufacturing  nation  of  North  America,  in  whose  markets  the 
Argentine  products  will  find  easy  and  abundant  collocation. 

An  enterprise  has  solicited  of  the  executive  power  its  consent  for  a  subsidy  with 
the  object  of  establishing  this  line  of  communication,  and  ho  remits  to  your  honorable 
body  the  petition  presented  by  it. 

In  view  of  the  preceding  considerations,  the  executive  power  solicits  of  your  hon- 
orable body  the  sanction  of  the  accompanying  project. 

May  God  guard  your  honorable  body. 

ROCA. 

Bernaudo  de   Irigoyen. 
The  Senate  and  House  of  Deputies,  etc.  : 

Article  1.  It  authorizes  the  Executive  power  to  grant  a  sum  not  exceeding  ninety- 
six  thousand  dollars  (fuertes)  annually,  the  subsidy  otfered  by  the  law  of  the  18th  of 
August  of  1865  to  a  line  of  steam  navigation  between  the  ports  of  Buenos  Ayres  and 
New  York. 
Article  2.  Communicate,  etc. 

Irigoyen. 

I  am  tempted  to  make  some  furtber  extracts  from  the  last  report  of 
Mr.  Edwaid  L.  Baker,  United  States  consul  at  Buenos  Ayres,  who  has 
no  superior  in  the  service  and  whose  dispatches  to  the  Department  are 
unequaled  in  their  interest  and  importance.  Speaking  of  the  jirogress 
of  the  country,  he  says  : 

PEACE   AND  progress. 

What  greatly  adds  to  the  business  impulse  and  spirit  of  development  which  now- 
adays more  than  ever  characterizes  the  people,  is  tho  political  quiet  which  pervades 
the  country.  Revolutions  and  attempts  at  revolution  are  matters  of  the  past.  All 
through  the  extent  of  tho  Argt>iitine  Republic  the  guaranties  of  tho  constitution  now 
liave  the  sanction  of  the  i>eople  and  the  laws  are  permitted  to  be  peacefully  executed. 
Labor  is  more  and  more  respected  and  honored,  and  capital  finds  ready  investment 
with  more  confidence  than  ever  before.  No  one  any  longer  thinks  of  or  fears  internal 
commotions  or  civil  disturbances.  The  Argentine  citizen's  lovo  of  country  no  longer 
manifests  itself  by  trying  to  get  forcible  possession  of  the  Government,  but  rather  by 
seeking  to  increase  tho  wealth  and  production  of  the  Republic, 

I'HE   ARGENTINE    POPULATION. 

It  appears  from  recent  investij;ations  by  M.  Galarce,  a  French  writer, 
that  there  are  257  English  houses  in  the  city  ajad  402  German.    The 


THE    UNITED    STATES    AND    LATIN    AMERICA.  79 

Eiigiisli  capital  employed  afjgregato.s  $121,952,000,  the  fiennan  $16,- 
010,070.  The  Italians  outnumber  all  other  forei<j:n  uationalities,  even 
surpassing  the  Argentines  themselves.  The  following  figures  show  it : 
There  are  7,729  Italian  firms  doing  business,  with  a  capital  of  $150,- 
584,730  J  Argentine,  1,357  firms,  with  $241,700,550  capital. 

As  traders  and  merchants  the  Spanish  far  outnumber  the  French,  the 
Spanish  numbering  2,223,  with  $74,031,930  capital  ;  the  French  1,870. 
with  a  cajiital  of  $32,840,040.  The  French  monopolize  the  cafes  and 
baaars ;  the  Spanish  the  more  substantial  grocery  and  general  supply 
trade.  Jewish  merchants  are  almost  unknown  here.  United  States 
investment  in  trade  figures  very  low  Indeed,  amounting  in  all  to  but 
26  business  ])laces,  with  a  capital  reckoned  at  $2,189,900. 

In  capital  the  Argentines  stand  foremost,  the  Italians  next,  and  the 
English  third  ;  but  as  regards  numbers  the  Italians  are  first,  Spanish 
second,  French  third,  Argentines  fourth,  Germans  fifth,  and  the  En- 
glish sixth.  So  it  appears,  while  the  English  stand  sixth  in  number 
they  stand  third  on  the  list  of  capitalists.  The  Germans  not  only  out- 
number the  English,  but  with  much  less  capital  transact  far  greater 
business.  Mr.  Galarce  accounts  for  this  result  quite  sensibly — that  the 
Germans  act  on  their  own  volition  according  to  emergencies,  while 
English  enterprise  is  conducted  more  cautiously  by  trading  syndicates 
abroad,  chiefly  located  at  Manchester  and  Liverpool.  The  Germans  are 
driving  the  English  steadily  and  surely ;  they  feel  it  themselves  and 
realize  they  must  go  or  change  their  tactics.  Our  traders,  more  ener- 
getic, less  timid,  and  thoroughly  progressive,  could  hold  the  Germans 
in  check,  but  the  English  are  too  conservative  in  their  present  mood  to 
go  through  the  struggle  successfully. 

THE  ENORMOUS  IMMIGrRATION. 

In  a  recent  dispatch  to  the  Department  of  State,  Mr.  Hanna,  the 
United  States  minister  at  Buenos  Ayres,  said: 

The  immiuration  from  European  countries  to  these  shores,  hitherto  chiefly  Italian, 
Spanish,  and  French,  is  now  rapidly  setting  in  from  other  quarters — England,  Scot- 
land, Ireland,  Holland,  and  Germany.  It  is  marvelous,  indeed,  in  what  gi-eat  num- 
bers they  are  arriving.  This  element  of  new-comers  will  work  a  great  change  in 
agricultural  development. 

All  this  immigration  is  assisted  by  the  Government  by  payment  of  the  passage  of 
the  immigrants.  In  this  way  they  are  easily  persuaded  to  leave  the  overdone  Old 
AVorld  for  the  brilliant  outlook  of  New.  The  amount  the  Argentine  Government 
paid  last  mouth  for  immigrants'  passage  is  reckoned  at  $500,000.  This,  kept  up 
throughout  the  year,  would  reach  $0,000,000.  Already  this  vast  influx  is  beginning 
to  tell  on  the  volume  of  grain  exports.  Last  year  the  country  shipped  44.5,000  tons 
of  corn  ;  this  year  it  will  go  above  2,000,000  tons.  In  addition  to  the  vast  sum  paid 
out  by  the  Government  in  the  encouragement  of  immigration  there  is  another  great 
outlay.  The  Government  lauds  the  immigrant,  keeps  him  and  his  family  some  days 
at  the  Immigrants'  Hotel,  pays  his  passage  in  river  steamers'and  on  railroad  trains  to 
reach  the  colonies  or  join  the  farms  or  estancias  where  emploj^ment  has  been  secured 
for  him.  This  probably  costs  the  Gcvernment  fully  as  much  more  as  the  cost  of  the 
ocean  passage,  say  $12,000,000  in  all,  paid  in  enconr3,gement  of  immigration  in  one 
year  alone. 


80  TRADE  AND  TRANSPORTATION  BETWEEN 

In  tlio  vast  fleet  of  merchant  ships  and  great  steamers  coming  here  to  trade  from 
every  European  port  the  United  States  flag  is  rarely  seen,  but  it  is  hoped  and  be- 
lieved that  the  ])olicy  of  the  new  administration  on  the  subject  of  an  encouraged 
steam  navigation  between  the  United  States  and  the  South  American  ports  will  suc- 
cessfully solve  this  embarrassment. 

POPULATION  OF  BUENOS  AYRES. 

Tlie  population  of  Buenos  A;^rres  on  the  15tb  day  of  September,  1887, 
when  the  census  was  taken,  reached  433,375,  and  the  growth  since  has 
been  greater  than  before. 

The  growth  of  population  and  trade  is  shown  by  the  increased  busi- 
ness transacted  by  the  postal  service,  the  increase  in  letters  duriug 
the  last  five  years  being  more  than  92  per  cent.,  in  printed  matter  over 
151  per  cent.,  and  in  telegrams  about  60  per  cent.  In  1884  17,427,431 
letters  passed  through  the  Argentine  post-office,  and  in  1888  the  total 
was  33,554,841.  In  1884  10,625,218  packages  of  printed  matter  passed 
through  the  post-office,  and  in  1888  27,974,999  packages. 

THE  RAILWAY   SERVICE. 

The  statistics  of  the  railway  service  show  a  similar  increase.  In 
1878  the  railway  systems  traveled  2,261  kilometers,  and  in  1887  it 
reached  7,415  kilometers.  In  1878  the  number  of  passengers  carried 
was  2,644,022,  and  in  1887  8,229,150.  In  1878  31,823  tons  of  merchan- 
dise was  carried,  and  in  1887  3,732,709  tons. 

There  continues  to  be  a  great  movement  through  the  Argentine  Ee- 
I)ublic  in  the  construction  of  railways.  So  great  are  the  number  of 
new  concessions  granted  by  the  national  Congress  and  by  the  different 
provincial  legislatures,  that  I  find  it  impossible  to  name  them  all.  Up 
to  the  meeting  of  the  last  Congress  there  were  national  concessions  for 
several  different  lines,  of  w^hich  thirteen  enjoy  the  guaranty  of  the  gov- 
ernment. These  guarantied  lines  represent  a  total  length  of  7,961  kil- 
ometers (4,975  miles),  and  the  aggregate  length  of  the  other  lines  1,272 
kilometers  (795  miles),  making  a  total  of  5,770  miles. 

The  last  session  of  the  Argentine  Congress,  in  response  to  the  recom- 
mendations of  the  President,  made  a  very  firm  stand  agaiust  the  grant- 
ing of  any  more  charters  or  concessions  with  government  guaranties ; 
and  the  fact  that  numerous  applications  were  made  for  new  lines  with- 
out such  guaranties  shows  that  the  condition  of  the  country  is  now  so 
promising,  that  capital  is  ready  to  embark  in  such  enterprises  without 
government  aid. 

THE  BANKS  OF  THE  ARGENTINE  REPUBLIC. 

A  dispatch,  dated  the  26th  January  last,  has  been  published  from  Mr. 
G.  Jenner,  Her  Majesty's  charge  d'affaires  at  Buenos  Ayros,  inclosing 
a  translated  abstract  of  an  article  which  appeared  in  the  Buenos  Ayres 
Haodels-Zeitving,  giving  a  brief  account  of  the  banking  s^n^  otlier 


THE    UNITED    STATES    AND    LATIN    AMERICA.  81 

financial  companies  at  work  in  the  Argentine  Eepablic. ''  The  following 
is  a  co])y  of  the  translation  in  question  : 

The  following  is  a  list  of  the  national  and  provincial  banks  of  the  Argentine  Repub- 
lic, with  the  authorized,  but  not  the  paid-up,  capitals,  as  the  latter  can  not  as  yet  be 
ascertained  with  complete  accuracy.  The  majority  of  these  banks,  as  is  already 
known,  are  of  quite  recent  foundation,  having  sprung  hito  existence  in  accordance 
with  the  provisions  of  the  free-banking  act  of  1887.  Under  that  act  large  additions 
have  been  niatlo  within  the  last  few  months  to  the  capital  of  all  those  already  in 
existence.  In  the  case  of  the  national  bank,  the  central  government  is  a  lar'>-e  share- 
holder, and  most  of  the  provincial  governments  hold  a  considerable  number  of  shares 
in  the  bank  of  their  respective  provinces  : 

Capital  (paper  dollars). 

Provincial  Bank  of  Buenos  Ayres  .'. ^ 50  OOO  000 

National  Bank 43,273,400 

ProA'incial  Bank  of  Cordova „ 25  000  000 

Provincial  Bank  of  Santa  F6 20  000  000 

Provincial  Bank  of  Salta __ 10,000  000 

Provincial  Bank  of  Eutre  Rios 9  ooo  000 

Provincial  Bank  of  Tucuman » (]  qoO  000 

Provincial  Bank  of  Santiago  del  Estero 6  000  000 

Provincial  Bank  of  Mendoza 5,000  000 

Provincial  Bank  of  Catamarca 5  ooO  000 

Provincial  Bank  of  Corrientes , 5  ooO  000 

Povincial   Bank  of  La  Rioja 4,000  000 

Provincial  Bank  of  San  Juan       3^  000  000 

Provincial  Bank  of  San  Luis __ 2  500  000 


Total 193,773,400 

Next  to  the  State  banks  are  to  be  considered  the  joint-stock  banks,  -which  are  di- 
vided into  two  classes ;  first,  those  whose  nominal  capital  is  in  gold,  as  below : 

Capital  (gold  dollars). 

Loudon  and  River  Plate  Bank 10  080  000 

Santa  F6  Territorial  and  Agricultural  Bank 10,000  000 

River  Plato  Society  of  Bills,  Loans,  and  Agency 6^  300,000 

Englisli  Bank  of  the  River  Plate 5  040  000 

English  Bank  of  Rio  de  Janeiro 5  040  000 

French  Bank  of  the  River  Plate y^  000  000 

Bank  of  Italy  and  the  River  Plate 3,050  000 

German  Transatlantic  Bank 1  250  000 

Total 43,760,000 

And,  secondly,  the  far  more  numerous  class,  mostly  of  recent  establishment,  whose 
nominal  capital  is  computed  in  paper  dollars  aa  follows : 

Capital  (paper  dollars). 

The  River  Plate  Agricultural  and  Commercial  Bank 20, 000, 000 

Building  Bank  of  River  Plate 20,  (.00, 000 

Mortgage  Bank  of  the  Capital 20,000,000 

South  American  Bank 10, 000, 000 

Stock  Exchange  Bank 10,000,000 

Territorial  Bank  of  La  Plata 10,000  000 

Mercantile  Bank  of  La  Plata 8, 000, 000 

Argentine  Colonization  Bank 8,000,000 

Bank  of  Spain  and  Rosario  de  Sante  V6 6,000,000 

Credit  Bank 5,000,000 

S.  Ex.  54 G 


82  TRADE    AKD    TRANSPORTATION    BETWEEN 

Capital  (paper  dollars). 

New  Italian  Bank  of  River  Plate 5,000,000 

Nutioual  Colonization  Bank 5,000,000 

Commercial  Bauk  of  La  Plata 5,000,000 

Industrial  and  Commercial  Bauk 5,000,000 

Commercial  Bank 3,000,000 

Spauuish  Bankof  tke  River  Plate 3,000,000 

Bank  of  Buenos  Ayres 3,000,000 

Bnildinj;  Bauk  of  Cordova 3,000,000 

Industrial  and  Building  Bank 3,000,000 

Real  Property  Bauk '2,000,000 

Popular  Colonization  Bank 2, 000,  000 

Argentine  Bank 1,085,000 

Bank  of  Recoveries  and  Loans 1,000,000 

Building  Bank  of  Santa  F6 1,000,000 

Discount  Bauk 1,000,000 

National  Credit  Bank 1,000,000 

Total 161,085,000 

TOTAL  BANKING  CAPITA!,, 

The  joint  capital  of  the  banking  institutions  of  the  Argentine  Republic,  therefore, 
amounts  to  about  420,000,000  paper  dollars  (or  about  £56,000,000),  viz: 

Dollars. 

State  banks 193,773,400 

Private  banks  (with  gold  capital) 65,000,000 

Private  banks  (with  paper  capital) 161,085,000 

Total '. 419,858,400 

If  we  put  the  average  net  return  of  these  establishments  at  only  12  per  cent,  the 
amount  of  annual  profits  would  be  about  50,000,000  paper  dollars  (about  £6,660,000). 
The  foregoing  figures  are,  moreover,  constantly  subject  to  increase,  not  only  owing 
to  the  foundatiou  of  new  companies,  but  also  to  the  development  of  the  existing  in- 
stitutions. 

THE  OPITs'ION   OF   AN  EXPERT. 

There  is  no  man  in  the  United  States  more  familiar  with  the  Argen- 
tine Republic,  its  conditions,  and  its  commerce,  than  Mr.  William  H. 
T.  Hughes,  of  the  firm  of  James  E.  Ward  &  Co.,  Xew  York  City,  and 
he,  in  reply  to  a  series  of  inquiries  addressed  to  him,  writes  as  follows : 

New  York,  ScjJtemher  1'2,  1889. 
My  Dear  Sir:  In  reply  to  your  favor  of  the 29th  of  July  last,  which  I  must  apol- 
ogize for  not  answering  before,  I  would  repeat  what  I  verbally  said  to  you  some  time 
since,  that,  as  regards  Brazil,  our  mutual  friend,  Mr.  Charles  R.  Flint,  is  much  better 
able  to  give  you  information  than  I  am.  As  to  the  Argentine  Republic,  I  had  in- 
tended to  answer  your  letter  more  fully  than  I  shall  be  able  to,  but,  owing  to  press 
of  business,  it  has  been  impossible  for  me  to  give  it  the  required  time. 

OUR  EXPORTS  TO  BUENOS  AYRES. 

In  reply  to  your  first  question,  I  would  say  that  the  exports  from  the  United  States 
to  the  Argentine  Republic  consist  of  all  classes  of  agricultural  implements,  all  kinds 
of  hardware,  lumber  in  every  sense  of  the  word,  white  piue,  pitch  pine,  oak,  ash,  wal- 


THE    UNITED    STATES    AND    LATIN    AMERICA.  83 

nut,  and  spruce,  ])ctruleuiu  in  all  its  products,  rosin,  lard,  starch,  cotton  duck,  and 
dry  jjood^-  generally  to  a  smaller  extent,  canned  goods  of  every  description,  and  a  list 
of  smaller  commodities  altogether  too  numerous  to  mention.  These  gltods  are  produced 
all  over  this  country,  and,  of  late  years,  there  has  been  included  in  the  exports  of 
lumber  quite  a  quantity  of  Oregon  i^ine,  which  seems  to  be  growing  in  favor,  as  the 
exports  of  the  same  a'.e  increasing.  The  agricultural  implements,  such  as  mowers, 
reapers,  plows,  etc.,  are  largely  manufactured  in  the  West  and  Northwest,  and  much 
of  the  lumber  exported  also  comes  from  these  regions.  A  large  part  of  the  white  jjino 
that  is  shipped  from  ports  in  the  United  States  to  those  of  Uruguay  and  the  Argentine 
Republic  is  really  the  product  of  Canada. 

In  answer  to  your  second  question,  I  would  say  that  there  has  been  a  marked  in- 
crease in  our  commerce  with  the  Argentine  Republic  and  Uruguay  in  so  far  as  ex- 
jjorts  are  concerned,  and  the  Increase  in  the  last  few  years  has  been  largely  in  the 
variety  of  articles  exported.  The  reason  for  this  increase  I  would  ascribe  in  a  great 
measure — beyond  the  natural  one  of  the  increase  of  population  of  those  countries, 
which  you  are  well  aware  has  been  very  considerable — to  a  somewhat  better  dispo- 
sition on  the  part  of  our  manufacturers  to  adapt  themselves  to  the  wants  and  re- 
quirements of  our  foreign  trade  ;  and  what  is  most  needed  to  increase  this  business 
is  that  our  manufacturing  interest  should  learn  that  it  is  absolutely  necessary  that 
they  should  make  the  goods  as  our  customers  want  them,  and  not  endeavor  to  make 
our  customers  adapt  themselves  to  the  goods. 

In  answer  to  your  third  question,  I  would  say  that  all  our  imports  from  the  Argen- 
tine Republic  and  Uruguay,  with  very  few  exceptions,  so  few  that  they  are  hardly 
worth  attention,  came  in  foreign  sailing  vessels,  principally  English,  and  they  are 
paid  for  with  credits  on  London.  As  to  the  jjercentage  that  comes  on  American  ships, 
I  have  not  the  figures  before  me  to  give  them  exactly,  but  from  a  general  knowledge 
of  the  business,  I  should  say  not  one-quarter. 

■      THE   MEANS   OF   TRANSPOKTATION. 

In  answer  to  your  fourth  question,  I  would  say  that  the  exports  of  the  Argentine 
Republic  and  Uruguay  go  almost  entirely  in  sailing  vessels,  the  proportion  of  Ameri- 
can to  foreign  ships  being  about  the  same  as  given  in  my  previous  answer.  The  pro- 
portion of  our  exports  carried  on  steam-ships,  until  within  a  few  months,  is  absolutely 
none.  Within  the  last  few  months  I  have  made  an  attempt  to  work  up  a  steam-ship 
business,  but  have  been  obliged  to  do  it  entirely  with  English  tramps,  there  being  no 
regular  line  whatsoever.  A  great  many  goods,  especially  of  the  more  expensive  class, 
such  as  dry  goods  and  the  like,  are  sent  to  Uruguay  and  the  Argentine  Republic  by 
way  of  Europe,  the  English,  French,  and  German  lines  all  issuing  through  bills  of 
lading,  via  Europe,  at  a  very  slight  advance  in  rates  from  what  is  charged  from  here 
by  any  steamer  going  direct.  All  the  principal  lines  running  from  Europe  to  Uruguay 
and  the  Argentine  Republic,  many  of  which  touch  at  Brazil  on  the  way  up,  are  sub- 
sidized by  the  respective  Governments. 

A  line  of  very  fast  steamers  has  lately  been  started  from  Genoa,  subsidized  by  the 
Italian  Government. 

THE   QUESTION   OF   PRICES. 

In  answer  to  your  fifth  question,  I  would  say  that  as  far  as  a  comparison  of  the 
prices  of  the  principal  articles  exported  from  the  United  States  to  Uruguay  and  the 
Argentine  Republic  is  concerned,  our  goods,  especially  when  quality  is  taken  into 
consideration,  are  cheaper  than  those  exported  from  Europe  of  a  like  character.  One 
great  difficulty  is  to  get  our  manufacturers  in  many  lines  to  make  cheap  enough 
goods  for  the  requirements  of  the  trade.  The  merchants  of  Uruguay  and  the  Argen- 
tine Republic  can,  as  a  rule,  buy  manufactured  articles  as  cheaply  in  the  United  States 
as  they  can  in  Europe,  but  they  can  not  obtain  the  credit  that  they  can  in  Europe, 
and  as  we  have  no  direct  banking  facilities,  our  manufacturers  and  commission  mer- 


84  TRADE    AND    TKAN.srORTATlON    BLVrWEEN 

chants  here  can  not  do  as  well  for  them  in  the  way  of  tiuie  as  their  opponents  in  Eu- 
rope. Any  shipper  of  standing  in  Europe  can  ship  his  goods  and  go  with  his  bill  of 
lading  to  any  of  the  many  banking  establishments  doing  that  business  and  get  his 
draft  against  the  receiver  cashed  without  any  dithculty,  whether  it  be  drawn  at 
sixty  or  ninety  days,  or  six  months. 

In  answer  to  your  question  as  to  what  extent  do  tlie  manufacturers  of  the  United 
States  produce  articles  especially  adapted  to  the  trade,  I  would  add  to  my  previous 
remarks  that  may  apply  to  the  question  that  they  do  not  make  them  to  the  extent 
that  they  might,  the  reason  being,  as  I  have  stated  before,  that  they  wish  the  people 
of  the  countries  south  of  us  to  adapt  themselves  to  what  they  make,  rather  than  to 
make  their  goods  adapted  to  the  wants  of  these  people,  and  here  is  whereour  Spanish- 
American  commercial  union,  about  which  you  know,  will  do  a  great  work,  if  it  can 
succeed  in  educating  the  American  manufacturer  as  to  the  wants  of  our  southern 
neighbors. 

RECIPROCITY  TREATIES. 

In  answer  to  your  sixth  question,  I  would  say  that  I  am  not  sure  as  to  the  tariff  on 
breadstuffs  and  provisions  of  tlie  Argentine  Republic  or  Uruguay,  as  they  are  so 
seldom  shipped  from  here  that  I  have  not  paid  any  great  attention  to  the  matter.  As 
a  rule,  the  duty  in  both  those  countries  is  high,  the  free  trade  monomaniac  not  hav- 
ing been  able  to  got  in  his  work,  and  the  people  generally  being  believers  iu  protec- 
tion. Refined  petroleum  pays  a  duty  of  about  $1.10  per  case  of  10  gallons ;  white 
pine  about  $3  per  1,000  feet,  reduced  to  our  money  ;  hard  wood  pays  from  $12  to  $13 
per  1,000. 

I  fully  believe  that  reciprocity  treaties  could  bo  negotiated  with  all  the  South 
American  countries  if  the  proper  means  are  taken  to  do  so,  and  that  we  could  there- 
by bring  up  the  raw  material  produced  in  those  countries  and  re-export  them  iu 
manufactured  goods.  I  do  not  know  of  the  Argentine  Republic  or  Uruguay  having 
any  treaty  which  would  prohibit  them  from  discriminating  in  favor  of  the  United 
States,  and,  if  wo  would  only  go  half-way  and  extend  the  hand  of  friendship  to  them 
by  opening  up  communication  with  them  and  lotting  them  believe  that  we  desire  to 
treat  Avith  them,  they  would  be  only  too  delighted  to  extend  their  business  relations 
with  us. 

If  the  duty  were  taken  off,  say,  our  stai>le  products,  such  as  petroleum,  lumber,  and 
the  like,  in  Argentine  Republic,  it  would  result  in  a  large  increase  of  the  business, 
and  the  only  way,  in  my  opinion,  to  bring  this  about  is  by  reciprocity  treaties,  and 
the  establishment  of  direct,  rapid,  and  frequent  communication  by  steam. 

THE   LUMBEIl  TRADE. 

In  answer  to  your  seventh  question,  I  would  say  that  the  exports  of  lumber  from 
the  United  States  to  the  river  Plate  territory  reach  very  close  to  150,000,000  feet  per 
annum,  say  about  60,000,000  feet  of  white  pine,  a  like  quantity  of  pitch  i)ine,  about 
40,000,000  feet  of  spruce,  and  about  5,000,000  feet  of  hardwoods  of  other  kinds.  In 
so  far  as  the  other  lumber-producing  nations  are  concerned,  wo  have  very  little  com- 
petition waged  against  us,  the  principal  one  being  the  exports  of  Baltic  pine,  which 
is  a  species  of  spruce.  The  exporters  in  those  countries  do  not  enjoy  any  siiecial  ad- 
vantages over  us. 

The  eighth  question  that  you  ask  mo  can  bo  better  answered  by  some  of  the  dele- 
gates which  you  will  have  at  your  conference  than  I  can  answer  it. 

If  a  common  coin,  be  it  gold  or  silver,  would  bo  adopted  that  would  circulate  any- 
where on  this  continent,  I  am  satisfied  that  it  would  be  a  great  assistance  to  com- 
merce. 

In  answer  to  your  ninth  question,  I  would  say,  in  so  far  as  the  Argentine  Republic 
and  Uruguay  are  concerned,  their  customs  regulations  and  methods  of  appraisement 
are  very  simple  and  fair,  and  there  is  no  system  of  fines  or  penalties  in  their  ports 


THE    UNITED    STATES    AND    LATIN    AMERICA.  85 

that  aro  not  mot  with  everywhere,  their  Governments,  as  a  rule,  doing  everything  in 
their  power  to  avoid  any  eomplicatious  or  unfriendly  acts  to  foreign  vessels  visiting 
their  ports, 

TRANSPORTATION  LINES  THE  FIRST  CONDITION. 

As  regards  my  opinion  generally,  which  you  ask,  I  would  say  that  if  your  coming 
congress  will  simply  show  to  the  nations  represented  there  that  this  Government,  or 
our  people,  desire  to  extend  their  relations,  any  or  all  of  these  Governments  will  only 
bo  too  glad  to  take  any  action  in  their  power  which  will  bring  about  such  a  result ; 
but  unless  some  action  is  taken  by  your  congress  which  will  lead  to  the  bringing 
about  of  the  necessary  steam  communication  between  these  ports  and  ours,  it  is  abso- 
utely  useless  to  think  of  extending  our  business  in  any  way  near  the  proportion  that 
it  can  bo  extended. 

Take  as  an  example  our  husiuess  with  Mexico.  Since  the  establishment  of  the 
railroads  and  regular  rapid  steam-ship  communication,  it  has  been  steadily  increasing. 
One  great  advantage  that  the  Germans,  English,  and  French  have  over  us  in  those 
countries,  and  it  is  no  small  one,  is  that  they  send  their  sous  and  establish  them  in 
these  countries.  It  is  only  natural  that  a  merchant  in  a  foreign  country  should  pre- 
fer to  import  the  products  of  his  native  land  to  those  of  a  foreign  country. 

Your  trip  through  South  America,  a  few  years  ago,  will  have  shown  you  very  plainly 
how  rare  it  is  to  find  an  American  house  in  any  of  the  cities  of  South  America  of  any 
prominence  or  standing. 

Another  very  important  point  in  the  dev  elopment  of  our  trade  is  that  our  consular 
and  diplomatic  service  in  all  these  ports  of  >South  America  should  he  greatly  improved  ; 
and  if  these  people  are  to  judge  of  us  by  the  representatives  that  we  have  heretofore 
sent  them  they  must  certainly  think  that  we  are  not  a  desirahle  people  to  deal  with. 

A  BETTER  ACQUAINTANCE  NECESSARY. 

I  believe  that,  were  a  regular  line  of  first-class  steam-ships  started  to  ply  hetween 
New  York  and  Uruguay  and  the  Argentine  Republic,  within  five  years  our  business 
with  these  countries  would  very  nearly  have  doubled  ;  and  if  we  could  negotiate  rec- 
iprocity treaties  with  them,  whereby  their  wool  would  be  admitted  free  to  this  coun- 
try in  exchange  for  the  admission  of  our  staple  articles  and  manufactures  free  at  their 
ports,  I  believe  that  it  would  quadruple  in  the  same  time.  An  experience  of  over 
twenty  years  in  New  York  as  a  commission  merchant  doing  business  with  these  coun- 
tries, has  proven  to  me  that  the  way  to  increase  our  business  is  to  get  those  people  to 
visit  us.  I  have  never  known  a  single  instance  where  one  of  their  merchants  with 
whom  I  have  been  doing  business  has  come  on  here  wherethe  business  with  that  firm 
has  not  increased  in  a  marked  manner.  As  we  are  to-day  situated,  they  can  not  come 
here,  except  at  considerable  inconvenience,  coming  around  by  way  of  Europe,  and  mak- 
ing the  tri'iJ  a  long  and  tedious  one  ;  whereas,  if  we  had  direct  rapid  steam  communica- 
tion, we  would  turn  the  line  of  travel  from  these  ports  of  Euroj)e  to  ourselves,  and  it 
would  result  in  an  immense  benefit  to  our  commercial  relations. 

Again  apologizing  for  not  having  answered  your  letter  before,  and  regretting  that 
I  am  not  able  to  do  it  at  the  length  I  should  have  wished,  and  with  my  heartiest 
wishes  for  the  success  of  your  congress  and  the  enlargement  of  our  trade  with  the 
countries  south  of  ns,  believe  me,  my  dear  sir,  very  sincerely,  yours, 

William  H.  T.  Hughes. 

William  E.  Curtis, 

Special  Agent,  Department  of  State,  Washington,  D.  C. 


86  TRADE    AND    TRANSPORTATION    BETWEEN 

OBSERVATIONS  OP  AN  ARGENTINE. 

Senor  Adolfo  G.  Calvo,  cousiil-general  of  the  Argentine  Eepublic 
at  New  York,  in  a  recent  interview  with  a  reporter  of  "export  and 
finance,"  said : 

So  fiir  as  the  Argentine  Repnblic  is  concerned,  there  is  a  brisk  and  lively  demand 
for  American  mannfactures,  and  this  demand  is  yearly  increasing.  The  demand  con- 
sists chielly  for  agricultural  implements,  and  it  is  safe  to  say  that  the  United  States 
can  not  ship  into  the  Argentine  Republic  more  of  this  class  of  machinery  than  there 
will  be  found  a  brisk  demand  for.  Want  of  direct  communication,  as  has  been  pointed 
out  by  yonr  paper,  is  a  great  drawback  to  the  development  of  this  trade,  and  in  fact 
of  any  extensive  trade  between  the  Argentine  Republic  and  the  United  States.  To 
get  direct  communipation,  we  are  obliged  to  ship  goods  from  here  by  a  sailing  line 
owned  by  Norton  &  Co.,  except  when  an  old  tramp  steamer  comes  along  and  can  be 
chartered.  We  ship  considerably  by  the  United  States  and  Brazil  Steam-ship  Com- 
pany to  Rio,  but,  of  course,  you  know  that  is  not  direct  communication,  as  the  goods 
have  to  be  transshipped  at  Rio  on  to  English,  French,  or  German  steamers  that  con- 
nect with  the  Argentine  Republic.  Sometimes  we  ship  goods  to  Liverpool  or  to  Ham- 
burg from  New  York  and  reach  our  country  with  American  goods  in  that  roundaboot 
way. 

THE   QUESTION  OF   TRANSPORTATION. 

It  is  not  the  fault  of  the  Argentine  Republic  that  direct  communication  with  the 
port  of  New  York  does  not  exist.  Our  Government  agreed  to  subsidize  the  Houston 
Line  from  this  port  to  Buenos  Ayres,  giving  it  a  gross  sura  of  $100,000  and  5  per  cent, 
on  the  capital  invested  in  the  Hue  for  a  term  of  years.  The  only  provision  made  was 
that  the  United  States  should  give  an  equal  amount  of  money  to  start  the  line.  Our 
Congress  voted  this  money  in  18S7,  but  the  United  States  would  give  nothing,  and  so 
the  project  of  a  direct  line  fell  to  the  ground.  The  agreement  was,  so  far  as  our 
Government  was  concerned,  that  the  line  should  have  at  least  four  vessels  of  over 
4,000  tons  register,  and  that  they  should  carry  a  number  of  young  lads  as  naval 
cadets,  sail  under  the  Argentine  flag,  and  h^ve  a  speed  of  not  less  than  16  knots  an 
hour. 

This  project  of  course  is  now  at  an  end,  but  we  have  a  contract  with  a  Mr.  Vasquez, 
who  represents  an  American  syndicate,  to  establish  a  line  between  us  and  Bordeaux, 
France,  the  vessels  of  which  will  be  subsidized  by  the  Argentine  Government,  will 
sail  under  its  flag,  be  capable  of  being  converted  into  war  cruisers  at  a  short  notice, 
and  will  have  a  speed  of  not  less  than  20  knots  an  hour. 

RECIPROCITY  TREATIES. 

As  to  the  matter  of  reciprocity,  it  is  one  that  concerns  the  Argentine  Repnblic  very 
seriously.  Wo  want  the  United  States  to  take  its  present  heavy  tarifl'  duties  off"  of  our 
wool.  We  think  this  is  only  just  to  us  in  view  of  the  fact  that  wool-growing  is  one 
of  our  most  imjiortant  iudustries.  Why,  Buenos  Ayres  alone  has  100,000,000  sheep, 
and  from  that  fact  you  can  judge  how  v»ry  important  this  matter  is  to  us  if  we  are  to 
find  an  export  market  in  the  United  States. 

Outside  of  agricultural  implements,  there  is  a  class  of  goods  manufactured  in  the 
United  States  that  is  absolutely  at  a  premium  in  South  America.  I  allude  to  your 
furniture.  In  design,  in  worknianship,  and  in  finish,  it  is  perfectly  uni(iue,  and  far 
Hnri)assfH  anything  that  is  imported  from  Europe.  It  can  not  be  equaled.  Among 
other  inaTinfactures,  as  you  can  see  by  the  manifests  I  have  here,  there  is  a  pretty 
good  trade  in  olectricil  machinery  and  appliances,  hardware,  stationery,  and  notions, 
between  tlie  United  States  and  the  Argentine  Republic. 

Aitierican  goods  .are  not  too  good  for  the  Argentine  market,  because  the  people  of 
the  Argentine  Republic,  like  the  peojjlo  of  the  United  States,  are  rich,  and  want  to 
get  good  things,  even  though  they  have  to  pay  good  prices  for  them. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  87" 

ENORMOUS  IKCREA8E  IN  WEALTH. 

The  extraordinary  increase  in  the  wealth  of  the  people  of  the  Argentine  Republic 
can  hardly  be  estimated  by  outsiders,  but  two  personal  examples  will  give  you  an 
idea  of  the  boom  that  Republic  is  enjoying.  Three  years  ago,  when  I  was  in  Buenos 
Ayres,  I  paid  a  man  for  talcing  care  of  my  horse  the  sum  of  .|'24  a  month.  Tliree 
months  ago  I  met  that  man  in  Paris,  taking  in  the  Exposition,  and  worth  $300,000. 
You  ask  me  how  he  made  the  money  ?  Simply  by  speculating  in  real  estate.  A  young 
man  whom  I  knew  at  the  same  time  as  a  clerk  in  a  bank  was  pointed  out  to  me  on 
the  streets  of  Buenos  Ayres  as  a  millionaire.  "No,"  I  said,  "  he  is  not  a  millionaire, 
he  is  only  a  bank  clerk."  The  reply  was,  "  It  is  easy  to  see  you  have  not  been  here 
for  the  last  few  years,  or  you  would  know  he  is  now  a  capitalist,  and  worth  a  good 
deal  over  a  million  dollars."  He  made  this  money,  too,  in  real  estate  speculation. 
That  real  estate  speculation  is  a  pretty  good  thing  in  the  Argeutine  Republic  you  can 
see  at  a  glance  when  you  reflect  that  the  monthly  immigration  into  the  country  is 
from  fifteen  to  twenty  thousand,  and  that  from  January  the  Ist  to  June  Ist  of  the 
present  year  156,000  people  have  been  landed  on  our  shores. 

In  regard  to  the  question  of  subsidies,  I  am  thoroughly  in  accord  with  the  views  of 
your  paper.  No  direct  line  between  the  United  States  and  the  Argentine  Republic 
could  pay  expenses  until  at  least  three  or  four  years  after  it  had  been  established. 
Therefore  I  consider  that  it  would  be  only  right  and  proper  for  your  Government  to 
liberally  subsidize  steam  lines  to  South  American  ports,  reserving  to  itself  the  right 
of  withdrawing  such  subsidies  or  reducing  them  when  the  lines  became  profitable  to 
the  companies  running  them. 

THE  INTERNATIONAL  CONGRESS. 

I  consider  that  the  approaching  Pan-American  Conference  will  be  of  the  greatest 
advantage  to  all  the  Spanish  speaking  peoples  of  South  America.  I  regret  to  see 
that  a  few  papers  published  in  the  Spanish  language  in  this  city,  and  in  other  parts 
of  the  United  States,  are  trying  to  belittle  the  work  which  the  Conference  is  designed 
to  accomplish.  It  is  well,  however,  that  the  American  people  should  understand  that 
these  papers  do  not  represent  the  feelings  of  the  Spanish-American  people.  These 
papers  are  Spanish.  They  are  not  American.  And  it  would  be  as  absurd  for  us  to  think 
that  they  would  approve  of  a  movement  designed  to  create  a  strong  fraternal  feeling 
and  an  increased  commercial  intercourse  among  the  peoples  living  on  this  continent 
of  America  as  it  would  be  to  dream  that  England  would  hail  with  joy  the  supremacy 
of  the  United  States  once  more  upon  the  ocean.  Just  as  the  people  of  England  will 
never  really  forgive  the  people  of  the  United  States  for  winning  their  independence 
from  her,  neitjier  will  Spain  ever  forgive  the  Spanish-American  peoples  for  winning 
their  independence  in  the  same  manner.  If  you  want  to  understand  the  true  senti- 
ments of  the  Spanish-American  peoples  as  regards  the  Congress,  you  must  read  our 
own  papers  and  not  the  papers  published  in  the  interest  of  the  Spanish  Goverument. 


8S 


TRADE  AND  TRANSPORTATION  BETWEEN 


XIII. 


THE  COMMERCE  OF  URUGUAY. 


The  total  commerce  of  Uruguay  during  the  calendar  year  of  1888 
was  $57,'i  85,702,  of  wliich  $29,477,448  were  imports  and  $28,008,254 
were  exports.  The  commerce  of  Uruguay,  like  that  of  other  South 
American  countries,  is  expanding  rapidly,  as  the  following  table  will 
show: 


Tear. 

Total. 

Tear. 

Total. 

1 8C4 

$14,  7W,  873 
27,  782,  393 
32, 426, 455 

1880 

$39,231,069 
51,  045,  257 

1870 

1884 

1874 

1888 

57,  485, 702 

The  exports  of  Uruguay  are  entirely  raw  products,  with  the  exception 
of  cured  beef.  The  imports  are  exclusively  manufactured  merchandise 
and  the  increasing  consumption  of  the  people  is  shown  by  the  rapid 
increase  during  the  last  twenty-five  years.  In  18G4  the  imports  were 
but  $8,384,1G7;  in  1874  they  had  increased  to  $17,181,072,  in  1884  to 
$25,414,238,  and  in  1888  to  $29,477,448. 

In  proportion  to  its  population  Uruguay  has  a  larger  foreign  com- 
merce than  any  other  nation  on  the  globe. 

RESOURCES  OF   THE  REPUBLIC. 

Its  resources  are  enormous.  There  is  no  other  country  more  ])roduc- 
tive,  and  iu  none  can  a  greater  amount  of  profit  be  derived  from  the 
same  amount  of  capital  and  labor.  The  country  is  a  rolling  prairie,  the 
soil  a  bhick  loam,  the  landscape  is  nearly  treeless,  except  where  groves 
and  orchards  have  been  planted,  and  it  resembles  the  fertile  sections 
of  Indian  Territory  or  southern  Kansas. 

The  wealth  of  the  country  is  almost  entirely  in  wool,  hides,  and  the 
viuious  parts  of  the  beef,  reduced  to  the  most  condensed  form.  Fray- 
bentos,  on  the  Uruguay  River,  a  port  admitting  ocean  steamers,  is  the 
site  of  one  of  the  largest  slaughtering  establishments  in  the  world,  the 
LiebigExtractof  Beef  Company,  an  English  corporation  with  $2,500,000 
capital,  which  has  been  doing  business  there  for  twenty-five  years,  and 
declaring  an  average  dividend  of  20  per  cent,  annually. 


THE    UNITED    STATES    AND    LATIN   AMERICA.  89 

The  slieep  industry  of  Uruguay  is  no  less  important  tban  the  cattle, 
and  the  largest  article  of  export  is  wool.  The  most  of  it  is  sent  to 
France  and  Belgium,  but  a  considerable  quantity  comes  to  the  United 
States. 

THE  IMPORTS  OF  URUGUAY. 

The  imports  of  Uruguay  are  furnished  mostly  by  England,  Germany, 
and  France ;  England  having  the  lion's  share.  Of  the  articles  imported 
into  the  country  cotton  goods  and  other  wearing  apparel  stands  first, 
wines  and  provisions  second,  and  the  manufactures  of  iron  and  steel 
third ;  but  being  a  country  without  manufactures  the  people  are  com- 
pelled to  import  every  little  article  that  enters  into  their  daily  life. 

All  that  has  been  said  concerning  the  steam-ship  question  in  the  chap- 
ter devoted  to  the  Argentine  Republic  may  be  applied  to  Uruguay,  for 
her  capital  and  principal  seaport  stan  ds  immediately  opposite  Buenos 
Ayres,  across  the  Rio  de  la  Plata,  about  the  same  distance  as  Cleve- 
land from  Detroit.  The  trade  relations  between  the  two  cities  are  very 
close,  and  all  the  steam-ships  for  Buenos  Ayres  stop  at  Montevideo  both 
coming  in  and  going  out  of  the  Rio  de  la  Plata. 

The  Government  of  Uruguay  would  willingly  enter  into  a  commercial 
treaty  with  the  United  States  provided  her  wools  could  be  admitted 
free  into  this  country,  and  during  the  visit  of  the  South  American  Com- 
sion  to  Montevideo  in  1885  the  President  of  that  Republic  assured  it  that 
he  would  gladly  join  in  any  arrangement  with  the  other  South  Ameri- 
can nations  that  would  result  in  the  issue  of  an  international  coin. 

NO   OBSTACLE  BUT  LACK  OF   TRANSPORTATION. 

There  are  no  obstacles  in  the  way  of  our  commerce  with  Uruguay 
except  the  lack  of  steam-ship  communication  and  the  absence  of  bank- 
ing facilities.  American  goods  are  popular  there  as  in  other  countries. 
The  people  are  highly  educated,  refined  in  their  tastes,  and  extravagant 
in  their  expenditures.  The  cost  of  living  is  less  than  in  almost  any 
other  country,  while  the  profit  of  labor  is  greater,  and  therefore  the 
people  are  enabled  to  spend  more  than  the  ordinary  proportion  of  their 
incomes  for  articles  of  comfort  and  luxury. 

Seilor  Don  Jose  Marti,  consul-general  of  Uruguay  at  New  York,  in  a 
recent  interview  with  a  reporter  of  Export  and  Finance,  said  : 

OUR  WANT   OF   FAITH   IN   THE   PEOPLE. 

In  my  opiuiou,  the  reasou  whj^  trade  is  uot  larger  between  tbe  United  States  and 
the  Republics  of  South  and  Central  America,  is  that  American  merchants  have  shown 
a  want  of  faith  in  our  people  that  is  uot  displayed  by  those  of  either  England,  Ger- 
many, or  France.  The  Spanish-Americans  are  a  highly  sensitive  people.  Nothing 
can  alienate  them  more  than  to  make  them  feel  that  you  believe  that  they  can  not  be 
fully  trusted  in  every  particular.  American  merchants  have  failed  to  recognize  this 
quality  of  the  Spanish-American  race.  The  truth  is  they  have  been  so  ill  instructed 
that  they  have  imagined  that  we  all  are  semi-barbarians,  a  mixture  of  Spanish,  Indian, 
and  even  negro  blood.    They  have  done  nothing,  or  next  to  nothing,  to  develop  the 


90  TRADE  AND  TRANSPORTATION  BETWEEN 

resonrces  of  any  oue  of  the  South  American  countries.  On  the  other  liand,  England, 
Germany,  and  France  have  poured  their  capital  into  every  country  of  South  and  Cen- 
tral America.  They  have  lent  us  large  sums  of  money  ;  they  have  developed  our  re- 
sources, and  they  seem  to  ho  only  too  anxious  to  find  auy  and  every  opportunity  to 
engage  in  new  industrial  projects.  The  South  American  people  are  not  ungrateful, 
and  years  of  experience  have  taught  them  to  fear  nothing  from  the  European  countries 
and  to  be  grateful  for  many  advantages  they  enjoy  by  their  intercourse  -with  them. 

POPULARITY  OF  AMERICAN  GOODS. 

As  a  matter  of  fact,  however,  so  far  as  sentiment  is  concerned,  all  the  Republics  of 
South  America  look  on  the  United  States  as  being  their  friend,  and  this  country  has 
been  alluded  to  proverbially  as  the  "  Mother  of  Republics."  This  sentiment  would 
induce  a  large  increase  of  trade  if  the  United  States  was  in  a  position  to  afford  the 
same  facilities  to  South  American  buyers  as  are  afforded  by  European  countries.  Of 
course,  sentiment  will  not  make  a  man  buy  inferior  goods  at  a  higher  price  when  he 
can  get  better  goods  at  a  lower  price.     It  would,  be  absurd  to  expect  this. 

Now,  as  to  the  means  to  be  taken  to  improve  trade  relations  with  South  America 
and  Mexico,  I  would  say  that  certainly  direct  communication  by  steam-ship  lines  is 
highly  desirable,  and  that  the  policy  pursued  by  England  and  other  countries  in 
this  regard  will  have  to  be  followed  in  order  to  place  goods  from  the  United  States 
as  cheaply  in  the  foreign  market  as  those  of  European  countries.  We  must  do  some- 
thing on  the  lines  which  have  built  up  the  trade  of  Europe  with  South  America  in 
order  to  become  an  active  competitor. 

THE  QUESTION  OF  RECIPROCITY. 

As  to  this  question  of  reciprocity,  it  is  one  which  no  doubt  will  be  carefully  con- 
sidered in  the  coming  Congress.  I  think  that  it  should  be  based  on  irade  already 
existing  and  not  on  political  considerations.  What  I  mean  is,  that  politics,  or  even 
the  suspicion  of  politics,  should  not  be  allowed  to  enter  into  the  discussions  of  the 
Congress  or  any  action  which  might  bo  subsequently  takeu  by  treaty  growing  out  of 
its  deliberations.  It  has  annoyed  me  very  much  to  observe  that  some  papers  and  a 
few  individuals  have  been  endeavoring  to  alarm  the  South  American  Republics  with 
the  idea  that  the  United  States  is  trying  to  compel  them  to  trade  with  this  country, 
as  being  their  natural  market  to  buy  in,  and  with  alluding  more  or  less  vaguely  to 
some  occult  designs  in  trade  by  the  United  States  against  their  commercial  independ- 
ence. This  is  altogether  wrong,  and  the  only  effect  it  can  have,  if  it  should  become 
generally  believed  in  by  the  South  Americans,  would  be  to  destroy  the  sympathy  for 
the  United  States  that  I  previously  spoke  of,  and  if  such  a  change  was  brought  about 
there  would  be  no  hope  of  an  increased  commerce. 

INCREASING  TRADE  WITH  THE  UNITED  STATES. 

As  regards  the  trade  of  Uruguay  and  the  United  States,  it  has  been  growing  greatly 
within  the  past  few  months.  A  largo  quantity  of  wheat  and  flour  has  been  shipped 
from  here  to  Uruguay,  due  to  a  failure  of  the  crop  in  that  country.  There  has  been 
a  revival  in  the  trade  also  of  agricultural  implements.  It  is  a  fault  among  American 
exporters  that  they  have  a  tendency  to  overflow  the  market.  Two  years  ago  they 
sent  down  a  large  stock  of  these  agricultural  implements  to  Uruguay,  and  it  is  only 
now  that  that  stock  had  to  bo  replenished.  There  has  also  been  a  considerable  trade 
in  lumber,  hardware,  and  patent  mediciuea.  A  beginning  has  been  made  in  export- 
ing American  beer  into  Uruguay,  but  the  quantity  shipped  has  not  been  large,  and 
in  fact  it  is  «mly  an  experiment. 

I  will  add  in  regard  to  the  long  credits  given  by  European  merchants  that  they  are 
not  given  to  every  one,  but  are  the  outcome  of  a  sure  knowledge  of  the  people  they 
are  trading  with,  for  in  some  republics  a  man's  credit  is  better  than  in  others.  The 
English  have  made  a  special  study  of  the  credit  system  in  South  America,  and  they 
make  few  mistakes. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  91 


XIV. 

THE  COMMERCE  OF  PARAGUA.Y. 


The  trade  of  Paraguay,  necessarily  passing  through  the  ports  of 
Uruguay  to  the  Argentine  Republic,  is  almost  entirely  included  in  the 
statistics  of  the  two  latter  countries.  There  is  a  small  direct  trade, 
which,  during  the  calendar  year  of  1888,  amounted  to  $5,878,306,  show- 
ing an  increase  over  1887  of  $1,430,640.  The  value  of  the  imports  in 
1888  was  $3,289,757,  and  the  exports  were  $2,588,608. 

These  figures  show  progress  and  prosperity.  Kot  long  ago  the  little 
republic  of  Paraguay  was  almost  entirely  devastated  by  a  war,  and  the 
population  was  nearly  exterminated.  In  fact,  the  most  reliable  statisti- 
cians assert  that  there  were  less  than  twenty  thousand  men  in  all  the 
country  at  the  end  of  the  struggle,  which  was  carried  on  for  nine  years 
against  overwhelming  odds  to  sustain  the  despotism  of  the  most  cruel 
and  intolerant  tyrant  of  modern  history. 

SIGNS   OF  A  REVIVAL   OF  INDUSTRY. 

But  it  appears  from  a  recent  message  of  the  President  that  the  coun- 
try is  making  considerable  progress.  Immigrants  are  coming  in,  capi- 
tal and  labor  each  find  employment,  and  under  the  encouragement  of 
the  Government  every  possible  effort  is  being  made  to  develoi)  its  won- 
derful resources.  The  public  lands  and  those  which  were  left  ownerless 
by  the  extermination  of  the  inhabitants  have  passed  into  the  hands  of 
an  English  syndicate,  who  hold  the  bonds  of  the  country.  This  syndi- 
cate is  doing  much  towards  colonizing  the  country,  and  in  a  few  years 
Paraguay  will  doubtless  be  resettled  and  resume  her  place  among  the 
prosperous  nations  of  America. 

THE  EXPORTS  AND  IMPORTS. 

The  exports  of  the  country  are  mostly  hides  and  yerbe  mate,  or  "Jes- 
uit's tea."  But  some  sugar  and  tobacco  are  being  grown,  and  the  timber 
resources  of  the  country  will  soon  be  developed  by  the  introduction  of 
steam  saw-mills.  The  imports  are  mostly  cotton  goodi^,  wines,  jewelry, 
furniture,  and  articles  of  household  use. 


92 


TRADE  AND  TRANSPORTATION  BETWEEN 


XV. 


THE  COMMERCE  OF  BRAZIL. 


The  foreign  trade  of  Brazil  in  1887  amounted  to  $212,816,250  and  in 
1888  to  $237,000,000,  the  imports  being  $122,000,000  and  tlie  exports 
$115,000,000.  Tbe  large  excess  of  imports  was  due  to  the  shipments 
of  coin  from  England  and  heavy  cargoes  of  railway  supplies  for  inter- 
nal improvemeuts. 

Of  the  exijort  trade  the  United  States  has  altogether  the  largest 
share,  taking  nearly  one-half  the  total,  in  the  form  of  coffee,  sugar, 
hides,  and  rubber,  while  the  remainder  is  divided  between  France  and 
England,  and  a  few  million  dollars'  worth  of  raw  material  go  to  Spain 
and  Germany. 

Of  the  import  trade  England  enjoys  about  one-half,  while  the  rest  is 
divided  between  France,  Germany,  and  Spain,  with  a  few  million  from 
the  United  States. 

EXPORTS  AND  IMPORTS. 

Without  including  the  imports  of  coin  the  commerce  of  Brazil  in  mer- 
chandise is  divided  about  as  follows : 


Countries. 


Imports  ffom 
Brazil. 


Exports  to 
Brazil. 


England 

France  

Germany 

Spain 

United  States 


$2C,  177,  259 

22,  538, 478 

7,  2C0,  722 

5,  G80.  821 

53, 710, 234 


$:}9,  G54,  720 

21,112,617 

13,321,412 

8,316,811 

7, 063, 892 


A  COMMERCIAL   PHENOMENON. 


This,  as  will  be  noticed,  is  a  most  remarkable  commercial  phenomenon. 
The  consumers  of  raw  products  in  the  United  States  furnish  one-half 
the  money  the  consumers  of  manufactured  merchandise  iu  Brazil  ex- 
pend in  Europe.  But  it  is  easily  exi)lained.  Trade  follows  transpor- 
tation. There  are  five  steam-sliip  lines  making  regular  voyages  and  a 
large  number  of  "  tramps"  making  irregular  voyages  from  Brazil  to  the 
United  States  and  bringing  us  her  coli'ee,  sugar,  rubber,  and  hides, 


THE    UNITED    STATES    AND    LATIN    AMERICA.  93 

while  there  is  only  one  line  of  steamers,  and  that  sending  a  ship  only 
once  a  mouth,  from  the  United  States  to  Brazil. 

HOW  IT  IS  CARRIED   ON. 

The  exports  from  Brazil  to  the  United  States  in  1888  were  brought 
in  71  American  vessels  of  57,808  tons  and  497  foreign  vessels  of  331,985 
tons. 

Our  exports  to  Brazil  were  sent  iu  75  American  vessels  of  G3,581 
tons  and  151  foreign  vessels  of  83,728  tons.  Most  of  the  foreign  vessels 
were  small  sailing  craft  and  partially  loaded. 

Of  our  imports  from  Brazil  $43,018,788  were  brought  in  foreign  ves- 
sels and  $10,691,440  iu  American  vessels,  while  nearly  all  our  exports 
to  Brazil  were  carried  in  American  vessels. 

THE   TRIANGULAR  VOYAGES. 

One  of  the  greatest  obstacles  in  the  way  of  an  extended  trade  in 
South  America,  particularly  in  Brazil  and  the  valley  of  the  Rio  de  la 
Plata,  is  the  system  of  triangular  voyages  made  by  English  and  Ger- 
man ships.  The  Liverpool,  Brazil  and  River  Plate  Steam  Navigation 
Comjiany  is  a  good  illustration. 

This  company  has  a  large  number  of  fine  steamers  which  sail  every  week 
from  Liverpool  and  Antwerp.  They  proceed  to  Brazil  and  the  River 
Plate  and  discharge  their  cargoes  of  European  manufactures.  These 
steamers  take  coft'ee,  etc.,  and  other  Brazilian  produce  direct  from  Sau- 
tos,  Rio,  and  Bahia  to  the  United  States,  where  they  load  again  for  Eng- 
land or  Antwerp,  taking  cargo  for  Brazil  and  River  Plate,  via  England. 
This  company  is  uotorious  for  their  discrimination  iu  rates  of  freight  in 
favor  of  certain  shij)pers,  and  is  thus  enabled  to  underbid  an  American 
ship  in  carrying  Brazilian  products  to  the  United  States.  The  steamers 
also  have  liberal  mail  pay  from  England  and  Belgium. 

There  are  several  other  companies  engaged  in  the  same  trade  and  it 
is  impossible  for  American  ships  to  compete  with  them.  It  is  this  sys- 
tem of  triaugular  voyages  which  causes  the  great  difference  between 
our  exj)orts  to  and  our  imports  from  Brazil.  These  steamers  arrive 
every  week  at  New  York  with  the  raw  products  of  Brazil,  but  never 
carry  any  merchandise  the  other  way.  At  least  eight  steamers  come 
from  Rio  de  Janeiro  to  New  York  for  every  one  that  sails  from  New  York 
'to  Rio  de  Janeiro. 


94 


TRADE    AND    TRANSPORTATION    BETWEEN 


WHAT  CUE  FOLLY  HAS  COST. 
This  sort  of  thing  has  been  going  on  for  a  century,  and  the  balance 
of  trade  has  been  piling  up  all  the  time.    The  following  statement  shows 
the  result  for  thirty  years: 


Year. 

Imports  from 
Brazil. 

Exports  to 
Brazil. 

Year. 

Imports  from 
Brazil. 

Exports  to 
Brazil. 

1859 

$22, 419,  000 
21,204,000 
18,100,0110 
12,  747,  000 
10,  945, 000 
14,  388, 000 
9,  784,  000 
16,  816, 000 
19, 100,  OOo 

23,  595, 000 

24,  837, 000 
25, 161,  000 
30,  551,  000 
30, 122, 000 
38,  540,  000 
43,  888,  000 

$6,  018, 000 
6,  021, 000 
4,  973,  000 

3,  858,  000 

4,  940,  000 

5,  354,  000 

6,  580,  000 
5,  691, 000 
5,  099,  000 
5,  695,  000 
.5,  806,  000 

5,  774,  000 

6,  013,  000 
5,  912,  000 

7,  197.  000 
7,  702, 000 

1875 

$42, 027,  000 
45,  440,  000 
43, 408,  000 
42, 968,  000 
36,  375, 000 

51,  970,000 

52,  8727000 
48, 801,  000 
44, 488,  000 
50,  265,  000 
45,  203,  000 
41,907,000 
52,  953,  000 
53,710,000 

$7,  742, 000 

1860                   .   - 

1876 

7,  310,  000 

18(51          

1877 

7,  .'■jS  1,000 

]8rt2        

1878 

8,  6.S(>,  OOo 

1863        

1879 

8,  194,  000 

1864      

1880 

8,  0ll5,  000 

1865 

1881 

9  252  000 

18(56      

1882 

9,  152,  000 

1867                  ...   . 

1883 

9,  252,  000 

1868 

1884 

8,  695,  000 

1809 

1885 

1886 

7,317,000 

1870            

6,  451,  000 

1^71          

1887 

8,  127,  000 

3872 

1888 

Total  30  years. 

7. 137,  000 

1874        

1,  014,  740,  000 

210,  230, 000 

SOME   STUPENDOUS  FIGURES. 

This  table  shows  that  during  the  past  thirty  years  we  have  paid  Bra- 
zil in  cash  over  and  above  the  value  of  what  we  have  furnished  her  in 
merchandise  the  enormous  sum  of  $708,510,000,  and  every  cent  of  it  has 
gone  into  the  j)Ockets  of  the  British  merchants  and  manufacturers.  Nor 
is  this  all.  During  all  this  time  wo  have  paid  the  owners  of  English 
ships  for  the  transportation  of  this  produce,  have  paid  interest  to  her 
bankers  who  have  advanced  the  money,  and  exchange  to  her  brokers 
on  the  drafts  which  settled  the  balances. 

The  exchange  alone,  which  amounts  to  three-quarters  of  one  per  cent, 
on  the  balance  of  trade  as  above  stated,  reaches  the  enormous  sum  of 
$402,820.75  for  a  single  year,  and  $7,610,550  for  the  thirty  years;  while 
at  the  rate  of  $10  a  ton  we  have  paid  in  freight  to  the  English  ship-own- 
ers the  sum  of  $24,464,380  during  the  last  thirty  years. 

ALL  DUE   TO   A  LACK   OF   STEAM-SHIPS. 

The  trade  with  Brazil,  as  has  been  said,  illustrates  as  well  as  any 
other  example  that  may  be  found,  the  fact  that  trade  follows  freight 
facilities.  The  goods  purchased  sind  consumed  by  the  people  of  Brazil 
can  be  furnished  by  the  manufacturers  of  the  United  States  of  as  good 
a  quality  and  at  as  low  a  price  as  they  can  be  purchased  in  Ijugland, 
and  the  i)refcrences  of  the  people  for  the  products  of  this  country  has 
been  emphasized  by  the  manufacturers  of  Germany  and  England,  who 
have  forged  our  trade-marks  and  violated  our  patent  laws  in  order  to 
deceive  their  customers  into  the  belief  that  they  were  purchasing  Amer- 
ican goods. 

PREFERENCE  FOR  AMERICAN  GOODS. 

The  preference  for  American  goods  by  the  people  of  Brazil  was  re- 
cently made  the  subject  of  a  long  dispatch  to  his  Government  by  Mr. 
George  Hugh  Windom,  the  British  minister  to  that  country..    In  this 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


95 


commuuicatiou  he  remiuds  Lord  Salisbury,  bis  official  superior,  that 
mercbaudise  sent  from  tbe  Uuited  States  to  Brazil  is  much  more 
popular  and  suitable  to  tbe  tastes  of  tbe  people  tban  tbat  exported  from 
England,  and  he  particularly  mentions  railway  supplies,  which  are  sup- 
posed to  be  produced  cheaper  in  Enjjlaud  tban  in  the  United  States. 
"  Tbe  railway  plants  of  Euglaud,"  be  said,  "  are  not  adapted  to  the  wants 
of  a  country  such  as  Brazil,  where  tbe  roads  are  full  of  curves  and  steep 
grades.  Tbe  consequence  is  that  out  of  252  locomotives  in  use  on 
eighteen  Brazilian  lines  213  were  made  in  the  United  States  and  only 
28  in  Great  Britain." 

The  exports  from  Brazil  are  mostly  coffee,  rubber,  hides,  sugar,  fruits, 
and  chemicals  and  drugs. 

THE  IMPORTS   OF  BRAZIL. 

The  imports  of  Brazil  comprise  nearly  every  article  that  enters  into 
the  consumption  of  tbe  people.  The  following  table  shows  the  exports 
to  that  country  from  the  United  States  in  1888,  compared  with  the 
exports  from  England  the  previous  year,  and  the  merchants  and  manu- 
facturers of  this  country  can  notice  tbat  there  is  no  difficulty  in  compe- 
tition in  nearly  every  article  mentioned  : 


Articles. 


Agricultural  implements 

Breadstutis 

Candles  

Carriages,  carts,  and  cars 

Cheniical.s,  drugs,  dyes,  and  medicines 
Coal 


Copper,  and  manufactures  of  . 

Cotton,  manui'actures  of 

Earthen,  cbina,  and  glasssvare 

Fancy  articles 

Fish 


Flax,  hemp,  and  jute,  manufactures  of 

Fruits 

Gunpowder  and  other  explosives 

Hair,  and  manufactures  of 

India-rubber  and  gutta-percha,  manufactures  of. 

Instruments  for  scientitic  purposes 

Iron  and  steel,  and  manufrctures  of 

Jewelry  and  manufactures  of  gold  and  silver. ... 

Lead,  and  manufactures  of 

Leather,  and  manufactures  of 

Lime  and  cement 

Malt  liquors 

Musical  instruments 

Oils: 

Mineral,  refined 

All  other 

Paints  and  painters'  colors 

Paper  and  stationery , 

Provisions,  comprising  meat  and  dairy  products. 
Salt. 


From  the 
United 

States. 


$20, 

2,  812, 

20, 


665, 
35, 
51, 
35, 
38, 
6, 
IV, 

11, 
29, 
679, 
58, 
12, 
20, 

13, 

7, 

832, 

37, 

5, 

37, 

438. 


From  the 

Unite4 
Kingdom. 


$122, 402 
192, 110 
328,  255 
1,  312,  G63 
180,601 
14,  ]  15,  069 
537,  296 


1,  205,  763 


138,  213 
'4,'998,"246 


73,  912 
1,  058, 454 


86,964 


142,  910 

C8,  934 

125,  249 


Seeds 

Silk,  manufactures  of. 
Soap . 


Spirits,  distilled 

Umbrellas  and  parasols 

Veixetables,  including  pickles,  etc. 

Wearing  apparel 

Wine 

Wood,  and  manufactures  of 

Wool,  manufactures  of 

AU  other  articles 


1,! 
(a) 

384,^ 

476,: 


171,  607 


34,927 
366,' 307 


Total 


7, 063,  892 


36,  776 

1,  514,  056 
1,  599,  868 

28,  3t^  482 


96  TKADE    AND    TKANSPORTATJON    BETWEEN 

BRAZIL  DESIRES  RECIPROCITY. 

As  the  United  States  is  the  largest  customer  of  Brazil,  and  takes  half 
the  products  of  her  soil  and  forest,  the  people  of  that  Empire  should  show 
an  inclination  to  discriminate  in  favor  of  our  merchandise  in  the  pur- 
chase of  the  goods  they  consume,  and  they  have  done  so  by  subsidizing 
an  American  steam-ship  line  to  New  York  to  which  the  United  States 
Government  would  pay  nothing.  There  is  a  very  strong  feeling  in 
Brazil  in  favor  of  a  reciprocity  treaty  with  the  United  States,  and  if 
our  Government  will  remove  the  duty  from  sugar  the  Parliament  of 
Brazil  would  willingly  remove  the  duties  from  some  of  our  peculiar 
products,  which  are  all  taxed  at  an  exorbitant  figure.  Flour  pays  a 
heavy  duty  j  kerosene  is  taxed  IGO  per  cent. ;  lumber,  90  i)er  cent. ;  lum- 
ber, 52  per  cent. ;  while  there  is  scarcely  anything  sent  from  this  country 
that  is  admitted  at  a  lower  rate  of  duty. 

PRESENT  CONDITION   OF  THE  EMPIRE. 

lirazil  is  just  now  in  a  critical  financial  condition  because  of  the  par- 
tial failure  of  the  coffee  crop  last  year  and  the  abolition  of  slavery. 
On  the  13th  of  May  last  every  slave  in  the  Empire  was  emancipated, 
and  the  result  is  that  to-day  it  is  almost  iraj^ossible  to  secure  labor  on 
the  plantations  for  the  proper  culture  and  gathering  of  the  crops  of 
coffee  and  other  products.  The  uncertainty  on  this  point  has  caused 
a  large  increase  in  the  rate  of  interest  and  much  discontent  among  the 
people.  The  Government  lias  come  to  the  rescue  and  has  made  an 
agreement  with  the  banks  of  the  several  large  cities  to  guaranty  loans 
to  planters  to  the  maximum  sum  of  $6,600,000  at  6  per  cent,  interest. 
At  the  same  time  the  Government  has  authorized  the  expenditure  of 
$5,500,000  to  promote  immigration,  and  thus  supply  the  necessary  labor 
to  cultivate  the  plantations. 

The  industrial  condition  of  Brazil  otherwise  is  encouraging.  Her 
railroads  are  being  extended  and  are  considered  profitable  property. 

The  export  tax  on  sugar  has  been  recently  abolished,  and  that  on 
coffee  has  been  steadily  reduced  for  the  last  twenty  years. 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


97 


Appendix  A  to  Part  First. 


OUR  EXPORTS  TO   SPANISH  AMERICA  IN  DETAIL. 

Statement  showing  the  valuen  of  the  vrincipal  and  all  other  articles  of  domestic  merohaiu 
dise  exported  from  the  helow-vamed  Southern  customs  districts  of  the  United  States  to 
Mexico,  Central  America,  the  fFest  Indies,  and  South  America,  during  the  year  ending 
June  30,  1888. 

MEXICO. 


a 
1 

1 

Cotton,  and  man- 
ufactures of. 

es      o 

d  B  H 
O  C8  p 

h£5 

O  MP* 

00 

B  t 

1 

Customs  dis- 
tricts. 

id 

a5 

p<2 

4i 

if 

3 

New  Orleans,  La  . 

Brazos  de  Santi- 
ago, Tex 

Corpus     Christi, 
Tex 

Dollars. 

51, 042 

152,  551 
4,065 

Dollars. 
10,  509 

58,  234 

34,  597 
3,090 

Dollars. 

3,728 

28,  550 
519,  340 

Dollars. 
225 

179,  300 

lOS,  657 
27 

Dollars. 
1,384 

29,  505 

286, 837 
3,617 

DoUars. 
2, 391 

32, 147 

19,275 
1,646 

Dollars. 

26,  921 

27,  274 

519, 109 
1,129 

Dollars. 
16, 172 

211, 010 

424, 425 

38, 185 

1, 500 

1,540 

1,074 
17,  585 

Dollars. 
61,330 

588,  512 

1,  574, 001 

571, 099 

1,500 

Galveston,  Tex... 
Kev  West,  Fla. .. 

8,278 

195 

77,435 

11,473 

281,218 

2,817 

2,651 

321,626 

9,818 

Pass   del  Xorte, 
Tex    

773 
121 

59 
1,894 

120 
23 

2,221 
99, 109 

1,573 

478 

11, 473 

Salnria,  Tex 

Teche,  La 

82,396 

14,816 

1.311 

26,723 

248, 480 

11, 753 

343, 756 
50 

1, 010, 453 
2,867 
2,651 

5,  307, 154 

Wilmington,  N.  C. 

All     other    dis- 

135,  609 
427, 296 

222,  908 

12, 784 



721,  530 

1, 377, 172 

323, 070 

2, 192,  395 

Total 

345, 048 

566,191 

1,  036, 462 

1,  948, 948 

390, 425 

1, 280, 126 

3,  247,  692 

9, 242, 188 

CENTRAL  AMERICA. 


Caatoms  districts. 

Bread- 
stufl's. 

Cotton, 
manu- 
factures 
of. 

Iron  and 
steel,  and 

manu- 
factures 
of. 

Pro- 
visions, 
compris- 
ing meat 
and  dairy 
products. 

Wood, 
and  man- 
ufactures 
of. 

All  other 
articles. 

Total. 

Dollars. 

184.497 

1,915 

Dollars. 

60,915 

167 

Dollars. 
33,459 

77 

Dollars. 

130,  293 

2,091 

Dollars. 

56,  999 

9,272 

3,652 

280 

153,  487 

Dollars. 

220, 138 

3,140 

DoUars. 

686,  301 

16, 662 

3, 552 

32  524 

Mobile,  Ala 

Pearl  River,  Miss 

Teche,  La 

31,  589 
386,  473 

655 
1, 391,  555 

A 11  other  districts 

693, 402 

856, 445 

232,  698 

3,  714. 060 

Total 

879,  814 

479, 144 

889,981 

365,  082 

223,  590 

1,615,488 

4, 453, 099 

S.  Ex.  54- 


98 


TRADE  AND  TRANSPORTATION  HETWEKN 


Statement  ahowitig  the  values  of  the  principal  and  all  other  articles  of  domeatic  merchandin« 

exported,  etc. — Continued. 

BRITISH  WEST  INDIES. 


CustotuB  districts. 


Baltimore.  Md 

New  Orleans,  La 

Apalaehicola,  Fla 

Brunsvs-ick,  Ga 

Charleston,  S.  O 

Fernandina,  Fla 

Georgetown.  S.  C 

Key  West,  Fla 

Mobile,  Ala 

Newport  News,  Va .  

Norfolk  and  Portsmouth,  Va. 

Pamlico,  N.  C 

Pearl  River,  Miss 

St.  Augustine,  Fla 

St.  John's,  Fla 

Savannah,  Ga 

Wilmington,  N.  C 

All  other  districts 


Total. 


Breads  tuffs. 


Dollars. 
27,  063 
316 


2,920 
44 


52 
356 
525 


530 
45 


198 
2,358 


36 
2, 682,  341 


2, 716, 784 


Coal. 


DoUars. 


260 


2,080 
618 


16,  363 


19, 321 


Wood,    and 
manufact- 
ures of. 


Dollars. 

9,785 

21!) 

4,899 

13,  903 

24,  >-67 

70,  5f'8 

280 

647 

24, 376 


64,  862 

«,  798 

1,200 

440 

14,913 

8,514 

34,  933 

470, 106 


753,  330 


All  other 
ai-ticles. 


Dollars. 

22,  715 
1,370 


691 
231 


30 

1,234 

650 


384 
434 


32^ 
1,810 


178 
3,  930,  5'.'8 


3,  960, 583 


DUTCH  WEST  INDIES. 


Fernandina,  Fla 

Georgetown,  S.  C  . . . 
Newport  News,  Va. 
All  other  districts. . 


Total. 


179,  028 


179,  028 


1,935 
345 


2.280 


6,460 
6,938 


29,  973 


43,  371 


72 
'356,'364 


356, 376 


FRENCH  WEST  INDIES. 


Baltimore,  Md 

Brunswick,  Ga 

Fernandina,  Fla 

Geo^geto^vll,  S.  C 

Norfolk  and  Portsmouth,  Va. 

Pearl  River,  Miss 

St.  John'.s  Fla  . . .  .^ 

Wilmmiugton,  N.  C 

All  other  districts 


Total. 


541,  531 


541,  531 


43, 358 


43,  358 


17,  393 
2, 476 

12,  559 
2,899 

26,  ."iOC 
3,518 

13,628 

40,241 
233,  338 


352, 552 


637, 287 
637,  287 


HATTI, 


2,439 
67,  627 
159,  845 

2,439 

345 
634,784 

4,710 
3, 452,  782 

72, 682 

i2i 

4, 247, 532 

Total 

635, 129 

121 

229,911 

3, 457, 492 

4,  322, 653 

THE    UNITED    STATES    AND    LATIN    AMERICA, 


99 


Statement  ahotoing  the  values  of  the  principal  and  all  other  articles  of  domestic  merchandise 

exported,  etc. — Continued. 


CUBA. 


Caatoms  districts. 


Baltimore,  Md 

Alexandria,  Va 

Apalachicoiii,  Fla 

BnitiHwick,  Ga 

Charleston,  S.  C 

Feruandina,  Fla 

Galveston,  Tex 

Key  West,  Fla 

Mobile,  Ala 

Js'ewport  News,  Va 

Norfolk  and  Portsmouth,  Va. 

Pearl  River,  Miss 

Pensacola,  Fla 

Kichmond,  Va 

Savannah,  Ga 

All  other  districts 


Total. 


Breadstnffs. 


Dollars. 
2,000 


125 


465,  705 


919, 922 


1,387,752 


Coal. 


Dollars. 
80,246 
3,285 


1,400 

21 

200 

10,  069 

24,996 


460,  5U 


Wood,  and 

manofact- 

ures  of. 


Dollars. 
47, 480 
30, 460 
8,301 
1,936 
3,666 
8,488 


1,183 
55, 975 


30,964 

61,954 

6,232 

5,664 

1,058,233 


1, 320,  636 


All  other 
atticlcs. 


Dollars. 
14,171 


742 

59,687 


67 


500 
6, 480,  085 


6,  555, 252 


Total 


Dollars. 

,  143,897 

33,  745 

8,301 

1,936 

4,  533 

8,488 

1,400 

526,  596 

56, 175 

10, 069 

24,996 

31, 031 

61,954 

6,232 

6,164 

8,  798, 607 


9,  724, 124 


DANISH  WEST  INDIES. 


1,300 

1,300 

19,  524 
1,990 

19  524 

16 

2,006 

St  John's  Fla     . .            

4,357 

1,454 

37, 832 

4,357 

Wilmington  N.  C            .... 

1,454 

209,964 

50,924 

275, 779 

574, 499 

Total 

209, 964 

72,438 

44,943 

275,  795 

603, 140 

PORTO  EICO. 


Baltimore,  Md 

Brunswick,  Ga 

Newport  News,  Va . 
Pearl  River,  Miss  . . 

Pensacola,  Fla 

Savannah,  Ga 

Wilmington,  N.  C  .. 
All  other  districts. . 


Total. 


640, 190 


C40, 190 


3,376 


2,224 


1,139 


6,739 


3,545 


3,510 

3,573 

7,557 

43,  484 

231, 402 


293,  071 


115 
980, 243 


980, 358 


3,376 
.3,545 
2,  224 
3.510 
3,573 
7,557 
43,  599 
1, 852, 974 


1, 920, 358 


SAN  DOMINGO. 


Wilmington  N.  C 

"^ 

5,985 
70,  608 

5,985 

All  other  districts... 

143,633 

2,677 

569, 657 

786,  575 

Total         

143,633 

2,677 

76,  593 

569, 657 

792, 560 

100 


TRADE    AND    TRANSPORTATION  BETWEEN 


Stalement  showing  the  values  of  the  principal  and  all  other  articles  of  domctlic  tnerchnndise 

exported,  etc. — Continued. 

ARGENTINE  REPUBLIC. 


Customs  districts. 


ApalachicolA,  Fla  . 

Brunswick,  Ga 

rernandina,  Fla... 

Mobile,  Ala 

Pi'arl  Kiver,  Miss  . 

Pensacola,  Fla 

St.  Mary's,  Ga 

Savannah,  Ga 

Wilmington,  N.  C  . 
All  other  districts 


Total. 


Wheat 
flonr. 


Dollars. 


740 


740 


Provis- 
iona,  com- 

prisiug 
meat  and 

dairy 
products. 


DoUart. 


49, 431 


49,  431 


Wood, 
and  manu- 
factures 
of. 


Dollars. 

28,289 

189,  833 

37, 136 

25,  926 

135,  582 

417,  778 

24,  275 

45,  270 

16,  793 

918, 130 


1, 839,  012 


All  other 
articles. 


Dollars. 


18, 870 
1,200 


16, 796 

3,997 

4, 169, 365 


4, 210,  228 


Total. 


Dollars. 

28,289 

208, 703 

38,  336 

25, 926 

135, 582 

417, 778 

24, 275 

62, 066 

20,790 

5, 137,  666 


6, 099,  4J 1 


BRAZIL. 


Baltimore,  Md 

Brunswick,  Ga 

Pearl  Kiver,  Miss  . . 

Pensacola,  Fla 

St.  Mary's.  Ga 

Savannah,  Ga 

Richmond,  Va 

Newport  News,  Va. 
All  other  districts . . 


Total. 


1,620,  279 


300,  430 
209,  221 
648,  423 


2,778,353 


214, 890 


1,708 
106, 094 
115,  703 


438,  395 


50 
82,584 
5,108 
53,653 
10,114 
11,500 


325 
221, 101 


384, 495 


32, 123 
3,158 


6,250 

237 

51,649 

3,  369. 232 


3, 462,  649 


1,  867,  342 

85,  742 

5, 108 

53, 653 

10, 114 

17, 750 

302,  375 

367,  289 

4,  354,  519 


7,  063, 892 


ECUADOR. 


30,  750 
17,701 

30, 750 

28, 604 

174,  592 

558, 920 

779,  817 

Total 

28, 604 

174,592 

48, 451 

558,920 

810,  567 

BRITISH  GUIANA. 


Baltimore,  Md 

Brunswick,  Ga 

Femandina,  Fla 

Georgetown,  S.  C 

Norfolk  :md  Portsmouth,  Va. 

St.  Mary's,  Ga 

All  other  districts 


Total. 


102, 819 


506,  068 


COO,  487 


29,  893 


409, 447 


439, 340 


25, 200 
3,912 
21, 148 
12, 130 

34, 650 
2,181 
92, 989 


192, 210 


42,490 


75 
368,169 


410, 674 


200, 402 

3,912 

21, 148 

12, 130 

34, 725 

2,181 

1,377,213 


1,651,711 


DUTCH  GUIANA. 


2,924 
6,985 

141 
91,  579 

3,065 

02, 821 

99,  646 

261, 031 

Total           

62,  821 

99, 646 

9,909 

91, 720 

264,096 

THE   TTNITED   STATES   AND   LATIN   AMERICA. 


101 


Statement  showing  the  values  of  the  principal  and  all  other  articles  of  domestic  merchandine 

exported,  etc. — Continued. 

REPUBLIC  OF  COLOMBIA. 


Costoms  distriota. 


Wheat 
flour. 


Provis- 
ions,  com- 

prisine 
meat  and 

dairy 
products. 


Wood, 
and  manu- 
factures 
of. 


All  other 
articles. 


TotaL 


Baltimore,  Md 

New  Orleans,  La 

Brunswick,  Ga 

Fernandina,  Fla 

Mobile,  Ala 

Newport  News,  Va 

Norfolk  and  Portsmouth,  Va. 

Pearl  lUver,  Miss 

Pensacola,  Fla 

Wilmington,  N.C 

All  other  districts 


Dollars. 

1,185 

29, 276 


Dollars. 
2,  0C2 
14,  720 


Dollars. 
10, 797 
51,311 
11,  777 
27, 935 
13, 871 


Dollars. 
42,453 
54,696 


Total. 


312,  521 


590,  092 


342, 982 


607,  474 


47,  242 

20,  750 

4,  736 

269,  050 

457,  519 


*78, 187 
*24,  890 


3,  315,  058 


Dollars. 
57, 079 
150, 003 
11, 777 
27, 985 
13,  871 
78, 187 
24,  890 
47, 242 
20, 750 
4,736 

4, 486, 721 


3, 515, 284 


4, 923, 259 


'  Bituminous  coal. 
URIJGUAT. 


1,172 

1,172 

7,988 

9,854 

8,500 

11,  863 

136, 453 

21, 115 

216,  609 

7,988 

Charleston,  S.  C ■ 

418 
600 

10,  272 

9;  100 

11, 863 

Pensacola,  Fla 

136, 453 

Savannah,  Ga 

5, 322 

876, 648 

26, 437 

All  other  districts 

40,888 

1, 134, 145 

Total 

42, 060 

412, 382 

882, 988 

1, 337, 430 

VENEZUELA. 


Newport  News,  Va 

5,027 
1,  776, 672 

5  027 

A 11  other  districts 

599. 221 

554,  653 

72,  763 

3,  003, 309 

Total 

699,221 

554.063 

72, 763 

1.  781, 699 

3,008,336 

P^RT    II. 


TRANSPORTATION. 


103 


THE  CARRYING  TRADE  OF  THE  WORLD. 


The  conditions  of  commerce  have  entirely  changed  within  the  last 
quarter  of  a  century.  The  methods  of  the  production  and  distribution 
of  the  results  of  agricultural  as  well  as  mechanical  industries  have  been 
completely  revolutionized  by  the  introduction  of  labor-saving  and  multi- 
plying machinery,  and  those  now  indispensible  agents  of  the  human 
will,  electricity  and  steam.  Our  power  of  production  has  multiplied 
much  more  rapidly  than  our  capacity  of  consumption,  and  we  have  come 
to  the  point  where  we  must  make  less  or  sell  more.  The  first  alternative 
is  impossible;  the  second  is  imperative,  and  so  we  stand  upon  the 
threshold  of  a  new  century  of  national  life  confronted  with  a  problem  as 
serious  as  that  of  slavery,  which  vexed  the  nation  thirty  years  ago. 

PRESENT  CONDITIONS  OF  TRANSPORTATION. 

The  exchange  of  productions  between  nations  has  come  to  be  gov- 
erned by  two  laws :  that  of  demand  and  supply,  and  that  of  transpor- 
tation. If  a  scarcity  exists  in  any  part  of  the  world  the  news  is  flashed 
under  the  ocean  and  across  hemispheres  to  the  favored  point  of  supply, 
and  steam  hurries  the  needed  commodity  to  the  point  where  it  is  de- 
manded. 

The  merchants  and  manufacturers  of  New  England  and  Philadelphia 
no  longer  load  clipper  ships  with  merchandise  they  can  not  sell  at 
home  and  start  them  off  across  the  seas  to  exchange  it  for  such  prod- 
ucts as  their  customers  have  to  offer.  But  the  merchants  in  every 
country  buy  what  they  want  where  they  can  buy  it  most  conveniently 
and  to  the  best  advantage.  The  merchant  in  Indiana  will  go  to  New 
York  if  he  can  buy  on  better  terms  there  than  in  Chicago  or  St.  Louis, 
and  the  question  of  transportation  enters  into  all  his  calculations. 

The  merchants  of  South  America  do  their  buying  upon  the  same  con- 
ditions. They  will  send  to  ports  from  which  they  can  get  the  best  rates 
of  freight,  and  the  most  rapid  means  of  transportation.  The  interstate- 
commerce  law  was  passed  by  our  Congress  to  relieve  the  shippers  of  the 
United  States  from  the  same  difficulty  at  home  that  they  continue  to 
labor  under  in  their  foreign  commerce.    Other  laws  have  been  enacted 

105 


106         TRADE  AND  TRANSPORTATION  BETWEEN 

to  meet  the  new  conditions  of  our  internal  trade,  but  nothing  has  been 
done  to  increase  the  facilities  for  reaching  our  foreign  markets. 

That  trade  will  follow  lines  of  transportation  is  demonstrated  by 
every  commercial  center  in  the  world,  and  the  necessity  of  govern- 
mental aid  for  the  encouragement  of  commerce  is  recognized  by  every 
nation  on  the  earth  except  the  United  States.  We  apply  the  i)rincii)le 
to  our  internal  commerce,  but  have  forbid  its  use  in  our  foreign  com- 
merce during  the  last  few  years,  except  in  two  specific  cases. 

SUBSIDIES  PAID  BY  ALL  NATIONS. 

The  following  table  shows  the  amount  of  money  paid  for  the  encour- 
agement of  foreign  commerce  in  the  form  of  subsidies,  bounties,  and 
for  the  transportation  of  mails  by  the  governments  named : 

France '. $0,792,778 

England 4,269,874 

Italy 3,503,035 

Germany 3, 131,610 

Argentine  Republic  (estimated) 3,000,000 

Brazil '1,700,000 

Spain 1,571,035 

Netherlands 775,191 

Mexico 1758,000 

Canada 730,000 

Japan 500,000 

Russia 454,306 

Belgium 430,127 

Austria-Hungary 363,000 

Australian  Colonies 280,000 

Chili ..  225,000 

Portugal 108,000 

Trinidad 98,000 

Barbadoes 90,000 

Jamaica 72,  000 

Various  West  India  Islands 72,  000 

New  Zealand 56,000 

United  States  (to  its  own  ships) t48, 966 

Norway  and  Sweden 41, 655 

Guatemala 34,000 

The  Island  of  Tobago 25,000 

San  Salvador 24,000 

Bahama  Islands 18, 500 

Nicaragua 16,  000 

Honduras 12,500 

Costa  Rica 12,000 

British  Honduras 7,500 

The  several  governments  of  Latin  America  are  now  paying  $219,500 
annually  as  subsidies  to  American  8hii)s,  or  more  than  five  times  as 
much  as  these  ships  receive  from  their  own  government. 

*  Not  including  $5,500,000  bounty  on  immigrants. 

t  Not  including  bounty  on  immigrants.  « 

}  To  foreign  ships,  $415,954. 


THE    TTNITED    STATES    AND    LATIN    AMERICA.  107 

While  all  these  suras  are  being  speut  by  other  nations  to  furnish  the 
means  of  communication  and  transportation  to  foreign  lands  for  the 
benefit  of  their  merchants  and  manufacturers,  the  United  States  per- 
mits its  letters  and  its  freight  to  be  carried  by  foreign  ships  at  an  enor- 
mous annual  cost. 

WHAT  WE  PAT  FOREIGN  SHIPS. 

From  the  report  of  the  United  States  Bureau  of  Statistics,  which 
gives  the  imports  and  exports  for  the  twelve  months  ending  June  30, 
1889,  I  have  compiled  the  number  of  tons  of  merchandise  imported  into 
and  exported  from  this  country  during  that  period.  The  total  tonnage 
both  ways  represents  19,787,000  tons. 

Estimating  the  freight  on  this  immense  quantity  of  merchandise  at 
$J.O  per  ton  (and  that  is  probably  a  fair  estimate,  if  we  take  into  ac- 
count all  classes  of  goods),  it  shows  that  we  paid  for  freight  alone  the 
large  sum  of  $197,787,000.  The  statistical  report  referred  to  also  shows 
that  American  vessels  only  carried  14J  percent,  of  this  amount.  From 
this  it  will  be  seen  that  we  paid  foreign  ship-owners  for  freight  during 
the  past  twelve  months,  $169,178,850,  and  American  ship-owners  re- 
ceived only  $28,691,150. 

In  1858  American  vessels  carried  71  per  cent,  of  all  our  exports  and 
imports.  In  the  winter  of  1858  the  Collins  Line  of  steamers  applied  for 
a  continuance  of  its  mail  pay  at  the  rate  of  $385,000  jjer  annum.  This 
was  refused,  and  a  law  was  passed  that  no  more  than  "  sea  and  inland" 
postage  should  be  paid  for  carrying  the  United  States  mails.  This 
killed  the  Collins  Line.  England,  however,  during  that  same  year 
increased  the  pay  of  the  Cunard  Line  from  about  $785,000  to  nearly 
$900,000  annually,  and  the  preamble  of  the  bill  in  the  English  Parlia- 
ment increasing  the  amount  paid  gave  as  a  reason  that  the  competition 
of  the  Collins  Line  made  it  necessary  in  order  to  maintain  the  line. 

WHAT   OUR  LACK  OP   STEAMSHIPS   COSTS  US. 

It  is  estimated  that — 

To  foreign  ships  for  freights  and  passenger* rates  we  pay  annually  an 
average  of $150,000,000 

To  remittances  abroad  for  railroad  and  general  securities  other  than  Gov- 
ernment interest  we  pay  over 100,000,000 

To  amount  expended  by  American  tourists,  and  by  those  traveling  for 

other  purposes  in  Europe,  we  pay '. 80,000,000 

To  amounts  expended  abroad  for  education  we  pay 4, 500, 000 

To  United  States  Treasury  remittances,  annually,  interest  on  United 

States  bonds  (at  present) 5,000,000 

To  foreign  exchange  we  pay  more  than  would  be  believed. 

Making  a  yearly  drain  of  cash  paid  from  the  United  States  of 339,  500,  000 

As  an  offset  against  this  we  have  a  return  by  emigration  estimated  at  not 
less  than 59,000,000 

Leaving  a  clear  balance  of  outgo  from  the  United  States  annually 
of,  in  round  numbera,  over 280,500,000 


108         TRADE  AND  TRANSPORTATION  BETWEEN 

If  we  had  direct  and  frequent  steam-sbip  communication  with  the 
South  American  countries  there  would  be  no  doubt  or  delay  about  the 
arrangement  of  banking  facilities  and  the  extension  of  credits,  the  ab- 
sence of  which  at  present  is  a  great  obstacle  to  the  extension  of  our 
trade,  as  well  as  a  heavy  expense  to  our  merchants.  With  Venezuela, 
where  we  have  direct  steam-ship  communication  once  in  ten  days,  there 
is  no  complaint  as  to  the  lack  of  banking  facilities.  They  are  just  as 
good  as  between  any  of  our  States,  and  the  same  would  be  the  condi- 
tion with  other  countries  if  we  had  means  of  communication.  Take 
Brazil,  for  example,  where  we  only  send  a  steamer  once  a  month :  Fig- 
uriDg  the  exchange  at  three-quarters  of  one  per  cent.,  during  the  last 
thirty  years  we  have  paid  the  English  bankers  $7,010,550  for  handling 
the  remittances  to  pay  for  the  products  we  have  purchased  of  Brazil, 
and,  at  the  rate  of  $10  per  ton,  which  is  the  average  price,  we  have  paid 
British  ship-owners,  $24,464,380  for  carrying  these  goods. 

ENGLAND'S  MONOPOLY  OF  THE  CARRYING  TRADE. 

Great  Britain  now  enjoys  a  practical  monopoly  of  the  ocean  carrying 
trade  of  the  world,  and  the  United  States  has  almost  entirely  disap- 
peared from  competition.  The  reason  for  this  is  that  ever  since  the 
successful  adaptation  of  steam  to  water  transportation  Great  Britain 
has  pursued  a  policy  of  systematic  and  intelligent  aid  to  her  steamship 
interests,  while  the  policy  of  the  United  States  has  been  narrow,  unsta- 
ble, and  actually  hostile  to  her  merchant  marine.  There  are  now  en- 
gaged in  the  foreign  trade  under  the  American  flag  about  56  steamers, 
representing  a  capital  of  $15,000,000  and  a  tonnage  of  158,155;  while 
on  the  other  hand  England  has  a  merchant  marine  amounting  to  5,190 
steam-vessels  with  a  capacity  of  7,304,815  tons,  representing  a  capital 
of  $1,100,000,000. 

John  Cardwell,  consul  at  Cairo,  Egypt,  sends  some  interesting  figures 
to  the  State  Department  in  regard  to  American  commerce  during  the 
past  year.  Eecords  kept  at  the  mouth  of  the  Suez  Canal  show  that 
only  3  American  vessels  entered  Port  Said  during  the  year.  Only 
two  other  nations  are  so  low  in  the  scale,  viz,  Denmark,  3 ;  Japan,  2. 
England  leads  the  list  with  2,730  steamers.  Then  follow  France,  293 ; 
Germany,  155 ;  Holland,  139 ;  Italy,  109 ;  Austria,  71 ;  Russia,  31 ; 
Spain,  26;  Norway,  25;  Egypt,  13;  Turkey,  10;  Portugal,  5;  Sweden, 
4.    England  sent  4,341,792  tons  of  freight,  while  America  sent  2,149. 

AMERICAN  VESSELS  CROWDED   OUT. 

The  figures  of  our  own  Bureau  of  Statistics  as  well  as  those  of  all  the, 
Central  and  South  American  nations  show  that  where  there  is  any 
foreign  trade  worth  competing  for,  American  vessels  have  been  crowded 
out  by  foreign  vessels,  and  that  the  tonnage  of  our  vessels  engaged  in 
the  foreign  trade  has  gradually  decreased.  In  1884  we  had  1,276,972 
tons  engaged  in  the  foreign  trade ;  in  1888  it  was  919,302  tons. 


THE    UNITED    STATES    AN»    LATIN    AMERICA.  109 

Our  trade  with  Mexico  on  the  Pacific  iu  1888  was  carried  on  by  212 
American  vessels.  All  our  trade  with  Guatemala  on  the  Pacific  was 
carried  on  by  4  American  vessels.  Only  2  American  vessels  entered  Peru 
in  1888.  We  only  sent  19  American  vessels  to  Chili,  and  all  went  under 
sail.  The  total  number  of  vessels  clearing  from  all  ports  in  the  United 
States  for  Chili  in  1888  was  19,  while  30  American  vessels  cleared  from 
Chili  for  the  United  States,  all  of  them  under  sail. 

OUR  TRADE  WITH   CUBA. 

In  the  trade  with  Cuba  American  vessels  have  the  preference.  In 
1888  there  were  entered  from  that  island  873  American  vessels,  of 
531,206  tons,  and  781  American  vessels  of  487,239  tons,  were  cleared 
for  Cuba.  The  number  of  foreign  vessels,  entered  was  573,  of  427,692 
tons,  and  307  foreign  vessels,  of  211,450  tons,  were  cleared.  And  yet 
the  number  of  American  vessels  in  the  Cuban  trade  was  less  in  1888 
than  in  1884.  In  1884  there  were  entered  at  New  York  from  Cuba  564 
American  vessels,  of  301,422  tons.  In  1888  there  were  entered  at  the 
same  port  from  Cuba  222  American  sailing  vessels  of  98,314  tons,  and 
92  American  steamers  of  141,891  tons ;  total,  314  vessels,  of  250,205 
tons.  In  1884  there  were  cleared  at  New  York  for  Cuba  358  American 
vessels,  of  231,476  tons.  In  1888  there  were  cleared  at  the  same  port 
for  Cuba  140  American  sailing-vessels,  of  63,357  tons,  and  86  American 
steamers,  of  143,355  tons ;  total,  226  vessels,  of  206,712  tons. 

SOME   SIGNIFICANT  FIGURES. 

As  a  natural  result  of  our  transportation  diflBculties  in  1888,  we  ex- 
ported twelve  times  as  much  merchandise  to  England  as  to  all  the 
South  American  continent,  and  more  to  Ireland  than  to  all  the  coun- 
tries on  the  east  coast  (Brazil,  Argentine  Republic,  Uruguay,  and  Para- 
guay) and  Chili  and  Peru  combined. 

We  exported  twice  as  much  to  France  as  to  all  these  countries,  and 
more  to  France  than  to  all  the  Latin  American  states,  with  the  excep- 
tion of  Mexico. 

We  exported  to  Belgium  only  $1,370  less  than  to  all  South  America, 
and  more  to  Holland  than  to  all  the  countries  on  the  east  coast  of  South 
America ;  more  to  Italy  than  Brazil,  the  Argentine  Republic,  Para- 
guay, and  Peru  combined ;  more  to  Portugal  than  to  all  the  countries 
on  the  west  coast ;  more  to  Spain  than  to  Chili,  Peru,  Bolivia,  Argen- 
tine Republic,  Uruguay,  and  Paraguay  combined ;  more  to  Spain  than 
to  Central  America,  and  all  the  nations  of  the  Spanish  Main  ;  more  to 
Russia  than  to  Brazil,  the  Argentine  Republic,  Uruguay,  Paraguay, 
Chili,  Peru,  Bolivia,  and  Ecuador, 


110         TRADE  AND  TRANSPORTATION  BETWEEN 


II. 

THE  UNITED  STATES  POSTAL  SERVICE. 


In  1888  the  total  cost  of  our  postal  service  was  $58,126,004,  and  the 
cost  ill  1889  will  be  halfa  million  more.  Nothing  the  Government  could 
do  to  promote  the  convenience  and  profit  of  our  people  in  their  internal 
commerce  has  been  left  undone.  Fast  mails  have  been  established  be- 
tween the  East  and  West  at  an  enormous  expense,  and  no  one  has  stopped 
to  ask  whether  the  revenues  meet  the  expenditures.  As  fast  as  a  little 
settlement  has  sprung  up  on  the  western  frontier  the  Postmaster-Gen- 
eral has  provided  mail  facilities  for  the  people,  for  the  encouragement 
of  commerce.  By  the  aid  of  Government  money  the  people  have  not 
only  enjoyed  frequent  and  regular  mail  communication,  but  the  lines  of 
transportation  thus  encouraged  and  sustained  have  afforded  them  the 
means  of  reaching  markets  for  the  sale  of  their  products  and  the  pur- 
chase of  their  supplies. 

POSTMASTER-GENERAL    VILAS  ON    "THE    ENCOURAGEMENT  OF   COM- 
MERCE." 

The  late  Postmaster-General  Vilas  recognized  the  necessity  of  "  en- 
couraging commerce  and  maintaining  intercourse  on  land  and  upon  our 
internal  waters  and  coast  lines,"  but  declined  to  afford  the  same  en- 
couragement to  those  who  were  striving  to  extend  our  trade  in  foreign 
lands.    In  a  report  to  Congress  he  said : 

Post-Offick  Department, 
Office  of  the  Postmasteb-Genebal, 

Washington,  D.  C,  June  IG,  1886. 
Sir  :  I  have  the  honor  to  acknowledge  receipt,  on  the  15th  instant,  of  certified  copy 
of  the  following  resolution  adopted  by  the  Senate  of  the  United  States  on  the  14th 
instant,  viz : 

'^  Eeaolved,  That  the  Postmaster-General  be  directed  to  transmit  to  the  Senate  a 
statement,  showing  the  inland  water  routes  over  which  the  United  States  mails  are 
transported,  the  length  of  each  of  the  same,  the  number  of  trips  per  week,  the  amount 
paid  as  compensation  on  each  of  said  routes,  and  the  total  expenditures  therefor  per 
annum,  and  the  amount  of  mail-matter  tran8port€4." 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


Ill 


And  in  response  thereto  I  transmit  herewith  a  tabular  statement  showing  all  the 
points  of  information  mentioned  in  the  resolntion  except  the  last.  These  routes  of 
inland  water  service  are  each  governed  by  peculiar  circumstances,  and  it  is  impossible 
that  there  can  be  any  uniformity  of  rule  or  compensation  regarding  them.  The  car- 
riers who  render  the  service  would,  in  many  instances,  not  be  found  upon  the  route 
at  all  but  for  the  Government  contract,  and  would  in  few  instances  be  found  making 
the  regular  trips  which  the  Government  requires.  Wherever  there  is  either  passen- 
ger or  freight  traffic  sufficient  to  keep  a  carrier  in  existence,  independently  of  the 
mails,  the  latter  will  be  found  to  be  generally  transported  at  a  moderate  price,  not- 
withstanding the  exaction  by  the  Government  of  regular  trips  at  stated  hours  subject 
to  deduction  or  fine  for  any  omission  or  faihire.  Higher  prices  are  necessary  on  those 
routes  where  the  carrier  would  not  exist,  or  if  to  bo  found  at  all  would  make  only 
irregular  trips,  but  for  his  employment  in  the  i^ostal  service.  And  as  all  these  routes 
are  compensated  at  a  gross  or  an  annual  rate,  pursuant  to  contracts  made  under  the 
requirements  of  the  statutes,  there  is  no  necessity  for  keeping  an  account  of  the 
weights  of  the  mail  actually  carried,  nor  any  advantage  to  be  gained  suflicioutly 
desirable  to  requite  the  cost  of  gathering  such  statistics.  It  is  therefore  impossible 
for  the  Department  to  transmit  the  information  required  in  the  last  phrase  of  the 
resolution. 

I  have  the  honor  to  be,  sir,  very  respectfully,  yours, 

Wm.  F.  Vilas, 

Postmaster-  General. 

The  President  pro  tempore, 

United  States  Senate. 


THE  EXTENSION  OF   OUR  INTERIOR  SERVICE. 

The  facts  concerning  the  extension  of  the  domestic  mail  service  are 
familiar,  and  it  is  not  necessary  to  point  out  the  energy  and  industry 
with  which  our  transatlantic  mails  have  been  dispatched.  But  during 
all  these  years  nothing  has  been  done  to  promote  communication  with 
Central  and  South  America  where  our  most  profitable  markets  lie. 
The  following  table  shows  that  those  who  have  been  engaged  in  extend- 
ing our  trade  in  these  markets  have  not  shared  with  the  general  public 
the  encouragement  of  the  Government : 


Tear. 

Total  cost  of 
mail  service. 

Amoaot  paid 

for  caiiyin2 
mails  to  .Span- 
ish America. 

1850 

$5, 212,  953 
19, 170,  610 
23, 988,  837 
36, 542,  804 
55,  795,  357 

$514, 000 
7(i7  244 

I860.          

1870 

799,  388 
38, 779 
48, 966 

1880      > 

1888        

112 


tradp:  and  transportation  between 
the  record  of  forty  tears. 


The  following:  table  shows  the  amounts  of  money  paid  annually  by 
the  United  States  for  the  transportation  ot  mails  for  the  last  forty  years 
to  vessels  of  all  lines,  and  also  to  vessels  sailing  under  the  American  flag : 


Fiscal  years. 

Total  amount 
paid  vessiils 
of  all  lines. 

Amonnt  paid 

vea.scls  sail- 

iiiK  uiitltT 

American  flag. 

Fiscal  years. 

Total  amount 
paid  ve.isela 
of  all  Hues. 

Amonnt  paid 
vessels  sail- 
ing under 

American  flag. 

1848 

$100, 500.  00 

235,  086.  22 

619,923  62 

1,465  818.48 

1,65.',,  240. 59 

1,  880,  273.  33 

1,  903,  286.  36 

1,  936,  714. 62 

1,880,765.63 

1,589,152.65 

1,211,061.49 

1,  204,  569.  62 

8.',4,  329. 93 

806,  885.  36 

374, 617.  67 

416,074.07 

440, 440.  94 

475,428.16 

713,  927.  70 

867,  202.  65 

1,  016,  146. 19 

$100,  500.  00 

23.5,  08(i.  22 

619,  923.  62 

1,465,818.48 

1  655,240.59 

1, 880,  273.  33 

1,  903.  286.  36 

1,  936,  714.  62 

1,  886,  765.  63 

1,  589, 152.  65 

1, 177,  303.  01 

1,  075,  220.  09 

707,  244. 59 

570,  9,52. 86 

89,  686. 04 

79,  397.  05 

64.356.11 

66,  571.  50 

245,  600.  88 

411,  064. 59 

625, 239. 47 

1809 

$1, 101,  689.  54 
1,115,333.36 

975,  024.  73 
1,  026,  891.  26, 
!,  044, 156. 92 

988,  393.  54 

976,  643.  77 
753,  610.  02 
a8,  896.  41 
199,  979.  87 
200, 026.  45 
199,  809. 28 
240, 066.  78 
280,  500. 67 
316,358.15 
332,  221. 21 
331,903.33 
350,  882. 13 
429,  036. 11 
481,  058.  55 

$757,  963.  90 
799,  388.  90 
699,  661.  37 
805  788. 16 

1819 

1870 

1850 

1871 

1851 

1872 

1852 

1873 

815, 400. 26 
750  205  50 

]858       

1874 

18.54      

1875 

740, 360.  69 
580,  062.  53 
286,  834. 97 
40  152  48 

18.55 

1876 

1856 

1877 

18.57 

1878 

1858 

1879 

41,  251. 46 

18.59 

1880 

38,779  89 

I860 

1881 

42,  552. 13 

1861 

1882 

40  645  42 

1862 

1883 

48,  076. 58 

1863 

1884 

53,  169.  92 

1864 

1885 

49,048.01 
43,318.81 

1865 

1886 

1866         

1887 

76,  727.  28 

1867 

1888 

86,  890.  45 

1868 

ENCOURAGEMENT   OF   COMMERCE  BY  LAND. 

For  a  single  fast  mail-train  between  New  York  and  Springfield  the 
New  York,  New  Haven  and  Hartford  Kailroad  receives  the  sum  of 
$17,647  annually,  or  as  much  as  is  paid  to  all  the  American  steam-ships 
that  ply  between  our  ports  and  those  of  South  America. 

A  similar  amount  is  paid  for  special  mail  facilities  between  Baltimore 
and  Hagerstown,  Md.,  between  Richmond,  Va.,  and  Quantico,  Md.,  be- 
tween Charleston  and  Florence  Junction,  S.  C. ;  between  Jacksonville 
and  Sanford,  Fla.,  and  between  Sanford  and  Tampa  in  the  same  State. 

For  special  mail  facilities  between  Charleston  and  Savannah  the  sum 
of  $19,710  is  annually  paid;  $20,075  for  a  similar  service  between  Wil- 
mington and  Florence,  N.  C;  $20,000  between  Philadelphia  and  Bay 
View;  $21,000  between  Bay  View  and  Quantico,  Md. ;  $31,298  between 
Savannah  and  Jacksonville ;  $29,577  between  Wilmington  and  Weldon, 
N.C.,  and  25,000  between  Albany  and  New  York  City. 

EXPENDITURES   FOR  SPECIAL  MAIL  FACILITIES. 

The  annual  appropriation  for  this  special  service,  which  is  simply  to 
hasten  the  carriage  of  the  mails  at  a  greater  speed  than  the  ordinary 
passenger  trains  give  between  the  places  named,  for  the  convenience  of 
the  patrons  of  our  postal  system,  amounts  to  over  $300,000  a  year,  while 
only  the  paltry  sum  of  $48,966,  or  within  a  few  dollars  of  the  amount 
expended  for  this  service  between  Weldon  and  Florence,  N.  0.,  is  ap- 


THE    UNITED    STATES    AND    LATIN    AMERICA.  113 

jiropiiatcd  to  promote  communication  between  the  United  States  and 
all  Spanish  America,  including  Mexico  and  the  West  India  Islands. 

Great  liberality  is  shown  in  making  provisions  tor  communication 
by  stagecoach  between  the  frontier  settlements  of  the  West.  The  an- 
nual expenditure  for  this  service  exceeds  five  millions  of  dollars,  the 
number  of  routes  in  1888  being  14,146,  of  an  aggregate  length  of  225,600 
miles,  while  the  ocean  steam-ships  receive  only  $49,000  for  a  service  of 
1,981,309  miles.  The  stage-coaches  received  6  cents  per  mile  for  the 
distance  they  carried  the  mails,  but  the  ocean  steamers,  which  cost  in- 
finitely more  to  maintain,  received  only  2  cents  per  mile.  No  one  con- 
tends that  the  star-route  service  is  self-supporting.  The  revenues  from 
it  amount  to  only  a  small  fraction  of  its  cost,  and  the  money  is  paid  from 
the  public  treasury  simply  to  maintain  necessary  communication.  The 
ocean  service  is  not  only  self-supporting,  but  the  Government  received, 
a  profit  of  two  cents  and  a  half  upon  every  letter  carried  while  the 
steamers  receive  only  a  similar  amount — one  half  the  value  of  the  stamp 
each  letter  bears. 

If  the  same  principle  were  applied  to  the  stage-coaches  and  the  in- 
land steamers,  or  even  to  the  railroads,  a  large  proportion  of  the  towns 
in  the  thinly  settled  sections  of  the  country  would  be  entirely  destitute 
of  mail  facilities. 

The  merchants  engaged  in  trade  with  Central  and  South  America 
simply  ask  the  same  advantages  given  the  merchants  in  the  far  West. 

THE  INLAND   STEAM-BOAT  SERVICE. 

During  the  year  1888  the  sum  of  $438,942  was  expended  for  the  in- 
land steam-boat  service.  The  number  of  routes  was  127,  of  an  aggregate 
length  of  11,058  miles,  and  an  annual  travel  of  3,216,000  miles.  The 
cost  per  mile  was  13.6  cents,  while  the  ocean  steamers  received  but  2 
cents  per  mile.  The  inland  steamers  do  not  receive  a  certain  amount — 
2^  cents  per  letter — but  are  permitted  to  bid  for  the  service.  There  is 
no  competition,  and  if  the  bids  are  reasonable  they  are  accepted. 

Before  taking  up  the  inland  steam-boat  service  by  items,  it  is  well  to 
recall  what  is  paid  for  mail  transportation  to  Central  and  South  Amer- 
ica. Last  year  the  Pacific  Mail  Company  for  a  service  of  681,887  miles 
received  $22,688.  The  "Red  D"  line  for  a  service  of  158,000  miles  re- 
ceived a  sum  of  $6,084  ;  the  Brazilian  Mail  Sleam-ship  Company  for  a 
service  of  140,000  miles  received  but  $11,733,  while  the  Ward  Steam- 
ship Line  for  a  service  of  128,960  miles  received  but  $195. 

INLAND   STEAMERS  PAID  BY  DISTANCE. 

The  shippers  engaged  upon  the  inland  waters  of  the  United  States 
and  in  the  coasting  trade  are  treated  by  the  Post-Office  Department 
like  the  railroads  and  stage-coaches,  and  paid  for  the  service  performed 
under  contracts  which  are  awarded  to  the  lowest  bidder.  But  if  a  ves- 
sel be  engaged  in  the  foreign  trade  the  owner  is  obliged  to  take  the 
S.  Ex.  54 8 


114  TRADE    AND    TRANSPORTATION    BETAVEEN 

mails  and  carry  them  to  their  destination  at  2^  cents  per  letter,  regard- 
less whether  the  destination  is  50  or  5,000  miles. 

American  steam-ships  engaged  in  the  foreign  trade  will  never  be  fairly 
paid  until  their  compensation  is  reckoned  by  the  length  of  the  voyage 
instead  of  the  number  of  letters  carried,  and  capitalists  will  not  invest 
their  money  in  ships  until  contracts  for  the  transportation  of  mails  are 
made  for  more  than  a  single  year.  When  the  rates  of  foreign  postage 
were  reduced  under  the  treaty  of  Berne,  under  the  International  Postal 
Union,  no  one  expected  that  the  reduction  would  be  made  at  the  expense 
of  the  steam-ship  owners,  but  such  is  the  fact.  Before  the  adoption  of 
uniform  postage  laws,  letters  were  paid  for  according  to  the  distance 
they  were  carried,  and  not  by  their  weight,  and  a  vessel  got  25  cents  for 
taking  a  letter  to  Australia  or  the  Argentine  Republic,  where  now  it 
only  gets  two  cents  and  one-half.  The  interstate  commerce  law  pro- 
hibits railroad  owners  from  charging  as  much  for  a  short  haul  as  a  long 
haul,  and  the  compensation  given  to  the  stage-coaches  in  the  West  is 
measured  by  the  distance  they  travel  and  the  cost  of  the  trips.  Still 
the  Government  of  the  United  States  refuses  to  recognize  this  principle 
in  paying  for  its  foreign  mails,  but  insists  that  a  steamer  shall  be  paid 
no  more  for  a  long  haul  than  for  a  short  haul  when  it  carries  the  mails 

STATEMENT   OP  WILLIAjVI  H.   T.  HUGHES. 

This  inconsistency  in  our  Congress  which  does  everything  possible  to 
iencourage  domestic  and  nothing  whatever  to  encourage  foreign  trade, 
is  bitterly  complained  of  bythemerchants  who  are  endeavoring  to  iind 
markets  in  Spanish  America  for  our  surplus  products.  Speaking  on 
this  point,  Mr.  William  H.  T.  Hughes,  of  the  firm  of  James  E.  Ward  & 
Co.,  said : 

Unless  some  arrangement  is  made  by  tbe  Government  to  establish  regular  and  fre- 
quent steam-ship  communication  -with  South  America,  it  is  absolutely  impossible  to 
increase  our  trade  with  those  countries  to  the  extent  that  it  can  and  ought  to  be  done. 

The  system  pursued  by  foreign  Governments  is  entirely  antagonistic  to  all  American 
steam-ship  lines  engaged  in  foreign  trade.  It  is  not  a  question  of  individuals  lighting 
individuals,  but  it  is  a  question  of  Government  versus  Government.  Take,  for 
instance,  our  own  line  to  Havana  and  Mexico.  We  are  running  in  competition  with 
the  Compania  Transatlantica,  whose  steamers  receive  from  the  Spanish  Government 
about  $1,750,000  per  annum  in  subsidies. 

The  present  system  of  payment  for  carrying  foreign  mails  is  not  only  unfair,  but 
absolutely  mean.  To  give  you  an  idea  of  the  compensation  paid  for  carrying  mails  I 
quote  from  a  letter  received  from  the  Acting  Superintendent  of  Foreign  Mails,  dated 
July  25,  1889  :  "  I  have  to  inform  you  that  the  Postmaster-General  has  recognized  the 
services  of  the  American  steamers  Santiago,  City  of  Washington,  Saratoga,  Xiagara, 
Cienfuegos,  City  of  Alexandria,  Manlmttan,  City  of  Columbia,  City  of  Atlanta,  and 
Seneca,  of  the  New  York  and  Cuba  Mail  Steam-ship  Lino,  in  transporting  the  United 
States  mails  from  New  York  to  Cuba  and  Mexico  during  the  quarter  ended  June  30, 
1889,  at  (he  sum  of  $3:34.80."  It  is  unnecessary  to  say  anything  farther.  You  can 
readily  seo  that  on  such  liberal  pay  not  many  dividends  could  be  declared. 

The  subsidies  granted  by  the  Spanish  Government  to  steamers  plying  to  Caban 
ports  have  had  the  natural  effect  of  lowering  rates  of  freight  to  such  an  extent  that, 
notwithstanding  the  geu»-r;il  advance  in  freights  all  over  the  world  within  the  last 
year,  we  are  to-day  carrying  goods  in  small  lots  to  Cuban  ports  at  a  less  rate  than  a 
steamer  can  be  chartered  to  make  the  voyage. 


THE    UNITED    STATES    AND    LATIN    AMERICA. 
AMOUNTS   PAID   TO   INLAND  STEAMERS. 


115 


The  following  statistics  will  demonstrate  how  the  law  operates  and 
its  iDJiistice  to  American  ships  engaged  in  the  foreign  trade  compared 
with  the  treatment  of  steam-ships  upon  the  inland  waters: 


state. 


Maine 

New  Hampshire 
Massachusetts .. 

Rhode  Island 

New  York 

Maryland 

Virginia 

North  Carolina.. 
South  CaroliHa . 

Georgia 

Florida 

Alabama 

Mississippi 

Kentucky 

Ohio 

Michigan 

Wisconsin    

Missouri 

Arkansas  

Louisiana 

Texas 

Washington 

Oregon 

California 

Alaska 


Distance 
traveled. 

Amount 
paid. 

Service. 

MiUs. 

384 

$5, 894 

Six  months. 

147 

3,  325 

Do. 

89 

12,  093 

Do. 

83 

12,  707 

Do. 

220 

11,096 

Do. 

1,119 

13,518 

Four  months. 

737 

36,  021 

Twelve  months. 

426 

12, 863 

Do. 

99 

2,  214 

Do. 

12 

COO 

Do. 

867 

79,  636 

Six  months. 

647 

9,350 

Do. 

476 

5,  900 

Twelve  months. 

674 

24,  879 

Do. 

127 

9,000 

Do. 

203 

5,176 

Six  months. 

85 

410 

Do. 

173 

7,000 

Twelve  months. 

700 

44, 500 

Do. 

1,084 

42,  240 

Do. 

39 

576 

Do. 

955 

54,701 

Do. 

154 

11,074 

Do. 

403 

16,944 

Six  months. 

1,050 

18,000 

Two  trips  per  month. 

AN  EXAMPLE   OF  INCONSISTENCY. 

Previous  to  1885  the  Havana  mails  were  included  in  the  foreign  serv- 
ice and  cost  $7,143.  That  year  they  were  transferred  to  what  is  called 
the  inland  steam-boat  service,  and  $58,339  is  now  paid  to  the  steamer 
that  carries  them  from  Tampa  via  Key  West  to  Havana.  This  is  just 
$10,000  more  than  is  paid  by  the  United  States  Government  to  the 
ships  of  all  nations  to  carry  mails  to  all  the  parts  of  this  hemisphere. 
This  steamer  Mascotte,  for  a  voyage  of  but  366  miles,  receives  two-thirds 
as  much  money  annually  as  is  paid  to  all  the  other  American  ships  that 
float  upon  all  the  oceans  of  the  world.  Previous  to  this  the  average 
annual  cost  of  the  Key  West  service  for  seventeen  years  was  about 
$47,000.  Were  these  same  terms  offered  to  other  ocean  steamers  the 
Stars  and  Stripes  woiild  not  be  so  rare  a  sight  in  the  harbors  of  other 
lands. 

During  the  last  year  the  Post-Office  Department  paid  $44,500  for  the 
transportion  of  the  mails  on  the  rivers  of  Arkansas,  and  only  $13,715 
for  the  transportation  of  mails  to  Japan ;  $.54,701  on  the  rivers  of  Wash- 
ington Territory,  and  only  $42,593  to  all  the  Asiatic  and  Australian 
ports.  We  paid  $79,637  for  carrying  the  mails  on  the  rivers  of  Florida, 
but  only  $47,997  for  sending  them  to  all  Central  and  South  America 
and  to  the  entire  West  Indies,  with  the  exception  of  Havana.  We  paid 
,,879  on  the  Ohio  Kiver  between  Paducah  and  Louisville;  $101,566 


116         TRAD?:  AND  TRANSPORTATION  BETWEEN 

to  subsidized  stage-coaches  in  Nevada;  $239,568  in  Washington  Terri- 
tory; $103,893  in  Idaho,  and  $417,000  in  Colorado,  and  but  $89,890  to 
encourage  American  steamers  all  over  the  world. 

MAIL   FACILITIES  PROVIDED  FOR   SUMMER   RESORTS. 

During  the  summer  season  of  1888,  in  order  that  tDe  good  people  who 
go  to  Xanlucket  and  Martha's  Vineyard  might  get  their  letters  regu- 
larly, the  Government  of  the  United  States  paid  a  subsidy  amounting 
to  $12,093.  This  for  five  months.  During  the  same  time  it  paid  $4,885— 
a  little  more  than  one  third  as  much — to  build  up  a  trade  with  Brazil. 
The  little  steam-boat  on  the  Androscoggin  lakes  would  have  received 
a  third  more  than  the  Red  D  line  'to  Venezuela  had  it  kept  going  the 
entire  year,  but  it  stopped  when  the  summer  boarders  went  home,  and 
was  satisfied  with  a  subsidy  of  $3,700  for  four  months,  while  the  Vene- 
zuela line  got  $6,000  for  twelve  months. 

The  excursion  boat  that  plies  between  Watkins  Glen  and  Geneva, 
N.  Y.,  got  twice  as  much  in  1884  as  the  Venezuela  steamers,  and  the 
ferry  between  Norfolk  and  Cape  Charles  got  as  much  last  year  alone  as 
the  Red  D  Line  has  received  in  five  years.  The  steamers  of  the  Chesa- 
peake Bay  and  its  tributaries  get  $49,539  annually,  or  more  than  is  paid 
to  all  the  Central  and  South  American  lines,  while  the  boat  between 
iSToiforlk  and  Baltimore  got  $13,518  or  $2,000  more  than  the  line  to  Bra- 
zil. The  coastwise  steamers  got  $563,000  last  year  for  less  than  500,000 
miles  traveled,  which  is  more  than  $1  a  mile,  while  the  steamers  to 
South  America  and  the  West  Indies  traveled  more  than  2,000,000  miles, 
and  got  less  than  $48,000,  2  cents  and  4  mills  a  mile. 

SOME  "odorous"  comparisons. 

During  the  fiscal  year  of  1889  the  Government  of  the  United  States 
paid  $48,996  to  sustain  our  commerce  with  all  of  the  countries  in  Cen- 
tral and  South  America.  Of  this  sum  the  Pacific  Mail  Steam-ship 
Company  received  $22,688  ;  the  Brazilian  Mail  Steam  ship  line  $11,733  ; 
the  "  Red  D  "  line  $6,084,  and  the  several  steamers  from  New  Orleans 
to  Centnil  America  $3,893.  These  four  steam-ship  lines,  which  consti- 
tute our  entire  communication  with  Central  and  South  America  under 
the  American  flag,  traveled  a  distance  of  2,052,686  miles,  which  was 
just  about  2  cents  a  mile.  At  the  same  time  the  coastwise  steamers  re- 
ceived $563,000  for  sailing  less  than  500,000  miles,  which  is  at  the  rate 
of  more  thnn  $1  a  mile.  During  the  same  year  we  ])aid  $12,783  to  carry 
the  mails  on  the  rivers  of  North  Carolina,  which  was  $950  more  than 
was  received  by  the  line  to  Brazil. 

We  paid  $79,636  to  carry  the  mails  on  the  rivers  of  Florida,  which 
was  $31,041  more  than  was  paid  for  the  entire  service  to  Central 
America. 

We  paid  $24,870  to  carry  the  mails  on  the  rivers  of  Kentucky,  which 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


117 


was  $2,200  more  than  the  Pacific  Mail  Steam-ship  Company  received 
for  its  entire  service  to  Central  and  South  America. 

We  paid  the  little  steam-boat  that  runs  between  Louisville  and 
Evansville  $10,000  for  its  services  for  the  fiscal  year  ending  June  30, 
1888,  or  very  nearly  as  much  as  was  paid  to  the  Brazilian  line  ;  while 
the  line  running  between  Evansville  and  Paducah,  Ky.,  got  $10,879.  . 

The  steam-boat  that  runs  between  Cairo  and  Elmont,  Ark.,  received 
$1,000  more  than  was  paid  to  encourage  commerce  with  Central  Amer- 
ica. 

The  steam-boat  running  between  ]!iew  Orleans  and  Partridge  re- 
ceived $300  more  than  was  paid  to  the  line  to  Brazil,  and  the  steam- 
boat between  Tacoma  and  Port  Townsend,  Wash.,  got  $29,700,  which 
was  more  than  was  paid  to  both  the  Pacific  Mail  and  the  Red  D  Line, 
and  more  than  twice  as  much  as  was  paid  to  encourage  commerce  be- 
tween San  Francisco  and  Japan. 

We  paid  $44,500  for  mail  transportation  on  the  rivers  of  Arkansas, 
and  $42,240  on  the  interior  rivers  of  Louisiana,  while  we  paid  but 
$42,593  for  our  entire  service  upon  the  Pacific  Ocean. 

We  paid  $54,701  for  mail  service  on  the  rivers  of  Washington  Terri- 
tory, or  nearly  tbree  times  as  much  as  was  paid  to  encourage  com- 
merce with  Australia. 

The  following  statement  shows  the  cost  of  transportation  of  mails 
upon  the  star  routes  and  inland  steam-boats  of  the  United  States  as 
compared  with  our  ocean  service  on  all  American  steamers  during  the 
last  five  years : 


Routes. 

1884. 

1885. 

1886. 

1887. 

1888. 

$5,  089,  941 

596, 573 

53, 169 

$5,  414,  804 
563, 002 
49,048 

$5,  900, 000 

615, 000 

43, 318 

$5,  850, 000 
575,  000 
76, 727 

$4,959,192 

438,  942 

86,890 

Ocean  service 

COMPLAINTS   CONCERNING   OUR   STEAMSHIP   SERVICE. 


There  is  a  great  deal  of  complaint  from  most  of  the  Central  and  South 
American  ports  ^bout  delays  in  the  transjiortation  of  the  mails  to  and 
from  the  United  States.  Under  a  sarcastic  title  of  "A  Great  and  Pro- 
gressive Country,"  the  Panama  Star  and  Herald  in  a  recent  issue  says: 

The  little  steamer  Lucy  P.  Miller  left  New  Orleans  on  Sunday,  7th  iust.,  and  arrived 
at  Colon  on  the  14th.  It  was  reasonable  to  expect  a  mail  by  this  direct  arrival  from 
the  great  and  progressive  United  States  of  North  America,  seeing  that  so  much  has 
been  said  by  the  Post-Office  Department  at  Washington  about  the  splendi^  facilities 
for  quick  dispatch  for  Central  and  South  America  via  New  Orleans.  But  the  public 
is  doomed  to  disappointment.  Only  one  small  bag  of  mail  matter,  mostly  newspa- 
pers, was  brought  by  the  Lucy  F.  Miller.  The  previous  mail  from  the  States  came 
via  Jamaica,  and  included  dales  up  to  about  January  20.  It  is  diflScult  to  foretell 
with  any  degree  of  certainty  when  or  from  what  point  of  the  compass  the  next  mail 
may  arrive.    If  it  could  be  expected  that  so  lofty  an  official  being  as  the  Postmaster- 


118  TRADE    AND    TRANSPORTATION    BETWEEN 

General  of  the  aforesaid  great  and  progressive  United  States  of  North  America  conld 
descend  so  low  as  to  consider  the  requirements  of  a  whole  continent  that  is  dependent 
upon  the  high  and  mighty  official  whim  it  would  seem  possible  that  the  present 
shameful  disregard  of  the  necessities  of  the  public  might  be  brought  to  an  end. 

THE   HAVANA  MALLS. 

A  recent  number  of  the  New  York  Times,  which  is  opposed  to  "  sub- 
sidies," contains  the  following: 

The  postmaster  at  Havana,  Cuba,  has  been  called  upon  by  the  Havana  Boletin  Co- 
mercial  to  demand  from  the  post-ofSce  authorities  at  Washington  a  remedy  for  delays 
in  the  transition  of  mail  matter  from  the  United  States  to  Cuba.  It  was  stated  in 
the  article,  which  was  published  on  April  21),  that  sixty  bags  of  delayed  mails  had 
arrived  on  the  steamer  Mascotte,  and  that  no  mails  had  been  received  during  the  pre- 
vious eight  days,  owing  to  the  lack  of  transportation.  "  It  is  outrageous,"  the  article 
further  says,  "  that  it  should  take  from  eight  to  ten  days  for  a  letter  mailed  at  New 
York  to  reach  Havana." 

THE  MAILS  TO   THE  WEST  COAST. 

The  New  York  Herald,  which  is  also  opposed  to  subsidies,  in  a  recent 
issue,  remarks : 

Take  for  example  the  mails  for  Callao  and  Valparaiso.  They  formerly  went  by  the 
Pacific  Mail  steamships  direct  to  Colon  at  regular  intervals,  and  thence  across  the 
Isthmus  to  Panama,  where  they  seldom  failed  of  a  speedy  connection  with  the  British 
Pacific  Steam  Navigation  Company's  vessels  down  the  South  American  coast.  Now 
they  go  to  Jamaica  and  await  opportunity  there  to  get  to  Colon  by  the  Royal  Mail 
steamships  which  touch  at  Kingston  on  their  way  from  England  to  the  Isthmus,  or 
by  any  tramp  sttamer  that  may  come  along.  The  consequences  are  frequent  failure 
of  connections,  much  irregularity  in  the  receipt  of  mails  from  New  York  at  the  west 
coast  i)orts,  and  detriment  to  trade.  There  are  electric  cables,  to  be  sure,  to  which 
resort  can  be  had,  but  their  rates  are  so  high  (several  dollars  per  word)  to  the  South 
Pacific  that  they  are  not  available  as  a  substitute  for  regular  postal  communication, 
by  reason  of  the  expense,  apart  from  other  considerations. 

THE  MAILS   TO   CHILI  AND  PERU. 

The  New  York  Tribune  of  a  late  date  contains  the  following: 

Daniel  H.  Davis,  of  No.  19,  South  William  street,  representing  Davis  Brothers,  of 
Linja,  Peru,  yesterday  showed  an  envelope  which  had  contained  a  letter  to  his  house 
in  Peru,  and  which  is  ample  testimony  of  the  inefficiency  of  the  mail  service  between 
New  York  and  that  country.  The  post-mark  on  the  envelope  indicates  that  it  was  re- 
ceived at  the  New  York  post-offico  April  13,  and  as  the  foreign  mail  post-office  schedule 
had  announced  that  the  steamer  Foxhall,  sailing  from  New  Orleans,  would  transport 
all  mail  received  on  thafc  date  it  was  marked  "viaNew  Orleans."  The  letter  reached 
New  Orleans  April  16.  On  April  19  it  was  returned  to  New  York,  where  it  remained 
in  the  post  office  until  the  next  mail  steamer  from  this  port  for  South  American  points, 
and  finally  reached  Lima  on  May  26,  occupying  forty-three  d-ays  in  traveling  a  dis- 
tance ordinarily  covered  iu  twenty  days.  •  Mr.  Davis  brought  the  matter  to  the  at- 
tention of  Postmaster  Pearson,  by  whom  he  was  informed  that  "  owing  to  quarantine 
regulations  the  steamship  Foxhall  had  in  the  mean  time  discontinued  her  trips  from 
that  port  to  Colon,  thus  necessitating  the  return  of  your  letter,  with  other  corre- 
spondence similarly  addressed,  to  this  office  for  dispatch  via  Kingston,  Jamaica." 
"Luckily  the  envelope  merely  contained  tissuecopies  of  letters  dispatched  by  a  pri- 
vate means,"  said  Mr.  Davis  yesterday  ;  "  but  this  is  only  one  instance  of  many." 


THE   UNITED    STATES   AND   LATIN    AMERICA.  11^ 

On  one  occasion  I  had  worked  late  into  the  night  to  prepare  my  mail  for  a  steamer 
of  one  of  the  fruit  lines  by  which  the  mails  were  advertised  to  be  sent  the  following 
day.  The  next  morning  I  learned  upon  scanning  the  post-ofiQce  schedule  that  the 
sailing  of  that  steamer  had  been  indefinitely  postponed.  After  the  usual  red-tape 
process  I  was  permitted  to  withdraw  my  letters  and  sent  them  in  another  way.  Most 
of  the  mails  for  Southern  Pacific  ports  are  shipped  from  here  to  Jamaica  by  steamers 
of  the  Atlas  or  Wessell  lines,  the  latter  of  which  is  very  irregular  in  its  sailings,  and 
the  passage  consumes  about  seven  days.  At  Jamaica  the  bags  are  held  over  from  one 
to  fifteen  days  to  await  the  touching  at  that  port  of  a  vessel  of  the  Royal  Mail  or 
some  other  of  the  foreign  lines  stopping  there  en  route  to  Colon.  Thus  all  the  impor- 
tant mail  matter  destined  to  the  thirty-eight  ports  between  Panama  and  Valparaiso 
touched  by  the  steamers  of  the  Pacific  Steam  Navigation  Company  is  left  for  an  in- 
definite period  of  time  at  Jamaica  to  trust  to  the  arrival  sooner  or  later  of  some  for- 
eign vessel  to  give  it  another  lift.  I  have  no  interest  in  the  Pacific  Mail  Steamship 
Company,  but  I  think,  for  the  preservation  of  the  commerce  of  South  America  with 
this  country,  which  has  been  so  much  courted,  that  the  Postmaster-General  should 
give  the  Pacific  Mail  people  a  fair  compensation  for  carrying  the  mails,  and  that  a 
law  should  be  passed  compelling  that  company  to  carry  them.  At  present  our  mail 
is  confided  to  private  hands  to  be  carried  to  Panama  and  it  is  there  posted  to  its  des- 
tination. 

Michael  Grace,  of  W.  R.  Grace  &  Co.,  said  that  his  firm  had  long  since  given  up  as 
hopeless  the  making  of  complaints  regarding  the  mail  service  to  the  South  Pacific 
coast  and  had  started  a  little  mail  route  of  their  own.  Their  letters  are  inclosed  in  a 
private  bag  and  intrusted  to  the  care  of  a  passenger  on  a  Pacific  mail  steamer  or  a 
private  messenger  and  posted  at  Panama. 

Joseph  Agostini,  of  No.  20  Beaver  street,  sends  his  mail  by  "Wells,  Fargo  &  Co.'s 
express  to  Panama,  as  do  De  Castro  &  Co.,  of  No.  54  William  street.  The  average 
cost  of  transmission  in  this  way  is  about  30  cents  a  letter  as  against  5  cents'  postage 
from  New  York.  De  Castro  &  Co.  complain  that  the  delay  in  the  transmission  of 
their  letters  when  they  used  the  mails  caused  considerable  loss  to  them  owing  to  the 
strict  regulations  in  vogue  in  South  American  custom-houses.  Because  the  invoices 
were  not  on  hand  when  the  goods  arrived  the  customs  authorities  placed  valuations 
on  them  of  from  10  to  20  per  cent,  in  excess  of  their  actual  value  and  the  consignees 
held  the  consignors  responsible  for  the  difference. 

APPEAL  OF  THE  GULF  STATES  MERCHANTS. 

In  May,  1886,  the  commercial  bodies  of  the  several  Gulf  ports  of  the 
United  States  i)resented  a  memorial  to  the  Postmaster-General,  which 
represents  the  view  of  the  people  of  that  section  with  regard  to  the  dis- 
advantage under  which  they  suffer,  because  of  our  limited  and  irregu- 
lar mail  facilities.    This  memoral  was  as  follows  : 

Hon.  W.  F.  Vilas, 

Postmaster-General  of  the  United  States : 

Sir:  Your  memorialists,  undersigned,  would  respectfully  state  that  they  have 
been  delegated  to  represent  a  maritime  interest  of  great  positive  and  prospective  im- 
portance, but  to  which  increased  and  adequate  facilities  of  commercial  correspond- 
ence and  intercourse  are  indispensable.  , 

The  Gulf  front  of  this  Republic  constitutes  the  ocean  boundary  of  the  last  tier  of 
Southern  States.  It  extends  to  the  boundary  of  Mexico,  a  distance  of  1,500  miles. 
Its  principal  ports  are  deep,  capacious,  safe,  and  adequate  to  the  demands  of  any  extent 
of  commerce.  These  ports  have  an  aggregate  population  of  half  a  million  and  export 
little  less  than  half  the  values  exported  by  the  whole  Republic. 

This  Gulf  front  confronts  all  the  chief  ports  of  the  Atlantic  side  of  the  American 


120         TRADE  AND  TRANSPORTATION  BETWEEI^ 

continent,  its  islands/and  its  isthmus.  These  Gulf  ports  communicate  with  the  wet<t- 
ern  interior  of  the  Union  by  the  Mississipjii  River  and  its  18,0U0  miles  of  uavigublo 
tributaries,  by  the  Alabama  and  the  Chattahoochee  Rivers,  as  also  by  a  system  of 
railroads  which  concentrate  at  New  Orleans  alone,  7,000  miles  of  lineal  rail,  and  fur- 
nishes to  Galveston,  Mobile,  and  Pensacola  complete  communication  with  the  same 
interior;  thus  all  these  ports  are  in  regular  mail  and  commercial  correspondence  with 
over  130,000  miles  of  American  railroad,  and  are  especially  and  directly  connected 
with  the  great  western  commercial  centers  of  Kansas  City,  St.  Louis,  St.  Paul,  Min- 
neapolis, Milwaukee,  Chicago,  Detroit,  Cleveland,  Cincinnati,  and  Louisville,  and 
also  with  the  whole  of  Canada  West,  now  filling  so  rapidly  with  population,  indus- 
try, and  wealth. 

We  will  not  tabulate  the  agricultural  and  manufacturing  productions  of  this  im- 
mense interior,  but  we  maj'  remark  that  it  is  the  anxious  inquiry  of  every  civilized 
nation  how  the  foreign  market  may  be  found  for  the  productive  surplus  with  which 
it  is  burdened.  Happily  this  Republic  is  not  under  the  necessity  of  acquiring  such 
foreign  market  by  conquest  or  by  colonization.  We  occupy  the  temperate  region  of 
a  continent  whose  tropical  products  lie  at  our  side.  The  Gulf  front  ports  are  the 
gates  through  which  this  complimentary  and  reciprocal  commerce  should  be  con- 
ducted. 

VALUE  OF  THE  COMMERCE. 

Already  this  commerce  has  attained  large  proportions.  The  foreign  trade  of  the 
tropical  and  semi-tropical  regions  is  estimated  at  a  little  less  than  $1,000,000,000; 
their  aggregate  population  at  50,000,000.  The  commerce  of  the  United  States  with 
these  countries  amounts  to  about  $250,000,000.  The  necessity  and  the  material  for  a 
direct  interchange  of  commodities  between  these  producers  and  consumers  has  been 
demonstrated.  It  would,  therefore,  be  supposed  that  the  intercourse  between  them 
would  be  intimate  and  unlimited,  yet  such  is  not  the  fact.  An  analysis  of  the  articles. 
of  which  our  existing  trade  is  composed  undoubtedly  comprehends  cereals  and  ani- 
mal food,  much  of  which  must  have  been  derived  from  the  western  regions  specified 
in  this  paper.  We  can  even  find  in  the  manifest  of  cargoes  shipped  from  our  easteru 
Atlantic  ports  for  Brazil  goods  from  Illinois,  Michigan,  Indiana,  Kansas,  and  even 
from  Louisiana,  on  the  shores  of  the  Gulf  of  Mexico.  This  proves  that  the  interior 
West  is  compelled  to  conduct  its  tropical  exports  over  Eastern  ways  and  around  dis- 
tant and  dangerous  coasts  at  an  enhanced  cost  of  time,  freight,  and  insurance,  and  to 
the  detriment  of  its  own  longitudinal  transportation  by  rail  and  river,  which  would 
be  the  proper  carriers  of  their  tropical  trade  by  way  of  the  Gulf  ports.  A  general 
proof  of  this  abnormal  disturbance  of  the  laws  of  trade  may  be  found  in  the  general 
fact  that  New  Orleans,  the  principal  Gulf  port  proper  for  conducting  the  commerce  of 
the  West,  has  found  her  export  of  flour  declined  from  ()00,000  to  32,000  barrels,  whilst 
St.  Louis  and  Minneapolis  send  almost  all  their  flour  for  foreign  export  across  the 
Mississippi  for  Eastern  shipment. 

Another  evidence  of  this  perversion  of  trade  is  found  in  the  following  fact:  Ac- 
cording to  the  proportion  of  coffee  and  sugar  consumed  per  capita  by  the  people  of 
the  United  States,  the  population  of  the  western  interior  would  be  entitled  to  about 
two-fifths  of  the  whole  import  of  those  articles. 

TRADE  OF  THE  GULF  PORTS. 

Assuming  the  coffee  annually  imported  into  the  United  States  at  5,000,000  sacks, 
2,000,000  thereof  ought  to  be  imported  through  the  Gulf  ports.  It  does  not,  how- 
ever, >»^ppear  that  they  received  more  than  one-half  million  sacks,  the  greater  part  of 
which  is  imported  through  New  Orleans,  though  that  port  exports  no  Western  produce 
whatever  in  exchange.  The  j)roportion  of  the  sugar  imported  through  the  Gulf  ports 
is  also  small,  while  the  dry  hides,  furniture,  and  medicinal  woods,  so  valuable  to  the 
growing  manufactures  of  the  West,  are  imported  almost  entirely  through  the  easteru 
Atlantic  ports.     We  may  add  to  these  evidences  of  a  perverted  trade  that  the  whole 


THE    UNITED    STATES    AND    LATIN    AMERICA.  121 

correspondence  and  travel  between  tbe  reciprocal  regions  treated  of  are  compelled  to 
sei'k  the  same  indirect  mode  of  communication.  Now,  if  instead  of  the  indirect 
counounication  between  our  western  interior  and  South,  Central,  and  Mexican  Amer- 
ica, the  lines  and  direct  longitudinal  connection  were  extended  by  ocean  steam,  the 
time  and  cost  of  this  commerce  would  be  greatly  economized  and  its  profits  placed 
with  the  inland  carriers,  to  whom  it  justly  belongs. 

Would  it  not  appear  that,  with  perfected  facilities  for  delivering  the  products  of 
our  own  region  and  distributing  those  of  the  tropics — with  Havana  and  Vera  Cruz 
witbin  two  and  a  half  days,  and  Panama  within  five  and  a  half,  of  the  port  of  New 
Orleans — that  this  connection  would  be  made  with  the  celerity  of  an  electric  circuit  t 

What,  however,  is  the  commercial  fact  t  That  the  whole  foreign  export  trade  of 
the  Gulf  ports  in  Western  produce  has  dwindled  to  insignificance,  whilst  the  imports 
of  tropical  goods  are  wholly  inadequate  to  the  supply  of  the  population  geograph- 
ically dependent  upon  them.  We  may  give  the  fact  that  in  the  construction  of  the 
ship-canal  at  Panama  the  Western  provisions,  work  animals,  and  other  supplies 
chiefly  of  Western  production,  have  been  furnished  to  the  contractors  from  eastern 
Atlantic  ports  and  even  from  Europe,  so  that,  with  the  exception  of  some  lumber 
dispatched  from  the  Gulf  ports  of  Pensacola,  Mobile,  and  New  Orleans,  little  of  the 
material  furnished  by  our  Western  interior  for  the  construction  of  this  vast  inter- 
oceanic  work  has  been  derived  directly  from  the  natural  source  of  such  supplies,  but 
has  been  exported  by  the  indirect  route  which  we  have  described.  Suppose,  for  ex- 
ample, we  say  that  with  proper  overland  and  ocean  facilities  the  city  of  Winnipeg, 
on  the  Red  River  of  the  Norih,  could  be  placed  within  seven  days  of  Panama,  is  it  just 
to  condemn  our  great  Western  cities  and  centers  to  employ  opposition  land  lines  to 
an  Eastern  port  of  tropical  commerce,  actually  longer  than  the  land  line  to  New  Or- 
leans, a  point  directly  on  their  way  to  that  tropical  commerce? 

WHY  THE  GULF  PORTS  ARE  BLOCKADED. 

Do  you  ask  a  solution  of  this  extraordinary  blockade  of  our  Gulf  ports  and  perver- 
sion of  its  legitimate  trade,  travel,  and  correspondence  ? 

It  is  to  be  found  in  the  want  of  regular  and  adequate  ocean  steam  postal  service 
connecting  the  Gulf  ports  of  the  United  States  with  those  of  the  tropical  regions 
of  this  continent. 

That  the  people  of  the  interior  are  not  to  blame  for  apathy  upon  this  subject  is 
shown  by  the  conquest  of  a  wilderness,  their  contribution  to  the  wars  and  wealth  of 
the  Republic,  and  by  the  construction  of  some  thousands  of  millions  of  dollars'  worth 
of  railroads.  They  have  done  their  part  on  land.  But  they  are  not  amphibious; 
they  have  not  the  capital  nor  the  experience  essential  to  build  up  a  maritime  inter- 
est without  some  aid  and  instruction.  Congress  has  power  "  to  regulate  commerce 
between  the  States  and  with  foreign  nations,"  and  to  "  establish  post-ofiices  and  post 
roads." 

Having  thus  made  known  to  you,  honorable  sir,  the  fatal  obstruction  of  direct 
trade  between  the  interior  west  and  the  tropics,  with  the  obvious  mode  of  its  re- 
moval, we  have  respectfully  to  submit  that  we  need  the  establishment  of  a  line  of 
ocean  postal  steamers  to  run  semi-monthly  between  the  Gulf  port  of  New  Orleans  and 
some  port  in  the  Windward  Islands  (W.  I.).  And  we  have  respectfully  to  ask  your 
recommendation  to  Congress  for  the  same,  upon  such  terms  and  schedules  as  in  your 
official  duty,  judgment,  and  patriotism  your  may  deem  proper. 

Respectfully  submitted. 

Wm.  M.  Burwell,  of  New  Orleans. 
RoBT.  C.  Wood,  of  Louisiana. 
S.  C.  Cobb,  of  Pensacola. 
D.  McRae,  of  Arkansas. 

Washington,  D.  C,  May  22,  1886. 


122         TRADE  AND  TRANSPORTATION  BETWEEN 
AN  APPEAL  FEOM  SAN  FRANCISCO. 

There  has  recently  been  held  iu  San  Francisco  a  conference  of  busi- 
ness men  to  consider  the  best  means  of  extending  trade  on  the  Pacific 
coast.  Among  other  reports  presented  was  one  on  the  subject  of  estab. 
lishiug  and  maintaining  permanent  ocean  mail  steamship  lines.  The 
first  reference  was  to  the  mail  service  of  San  Francisco  and  Vancouver 
with  China  and  Japan.  The  Canadian  Pacific  three  steamers  are  sub- 
sidized at  the  rate  of  nearly  $38,000  per  round  trip  for  each  steamer, 
while  the  eight  steamers  of  the  two  American  companies  running  from 
San  Francisco  are  allowed  $400  apiece  for  the  round  trip.  The  report 
declares  that  the  statement  of  the  fact  is  enough  to  condemn  the  parsi- 
monious conduct  of  our  Government  in  respect  to  the  ocean  commerce, 
and  to  excite  admiration  for  the  liberal  and  progressive  policy  of  Eng- 
land and  Canada. 

Among  other  striking  features  presented  is  the  fact  that  the  Austra- 
lian and  New  Zealand  mails  to  and  from  San  Francisco  are  carried  by 
the  American  Steamship  Company,  which  receives  $24,000  yearly  from 
the  Hawaiian  Government,  $200,000  from  the  Australian  and  New 
Zealand,  and  about  $4,000  from  the  United  States,  which  latter  sum 
has  lately  been  increased  to  $47,000,  owing  to  dissatisfaction  of  the 
New  Zealand  Government. 

Kesolutions  were  submitted,  calling  upon  Congress  to  enact  the  nec- 
essary laws  and  appropriate  a  sufficient  sum  of  money  to  enable  Amer- 
ican steam-ship  lines  to  compete  with  the  foreign  subsidized  lines  run- 
ning to  China  and  Japan,  South  American  points,  New  Zealand  and 
Australia,  and  Mexican,  Central  American,  and  British  Columbian 
l)oints.  Resolutions  also  favor  the  adoption  of  the  French  scale  of 
navigation  construction,  naval  bounties. for  ships,  provided  that  the 
ahips  be  built  with  a  view  to  being  enrolled  in  the  naval  reserve  list. 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


123 


III. 


HISTORY  OF  OUR  FOREIGN  MAIL  SERVICE. 


Previous  to  1845  the  United  States  had  no  regular  mail  service  on 
the  ocean,  but  letters  were  sent  upon  sailing-ships  that  happened  to  be 
bound  for  the  ports  to  which  they  were  addressed. 

On  the  3rd  of  March  of  that  year,  however,  an  act  was  passed  by 
Congress  authorizing  the  Postmaster-General  to  make  contracts  with 
the  owners  of  American  vessels,  steam-ships  preferred,  for  terms  of  not 
less  than  four  nor  more  than  ten  years,  for  the  regular  transportation 
of  mails  upon  the  sea.  The  rates  of  compensation  as  fixed  by  the  law 
were  as  follows : 

For  each  letter  or  package  weighing  not  more  than  one-half  ounce 
to  France  or  England,  or  any  other  country  not  more  than  3,000  miles 
distant,  24  cents,  with  the  inland  postage  added  if  the  letter  were  mailed 
at  any  interior  i^ost-oflSce. 

Upon  letters  and  packages  weighing  more  than  one-half  ounce  and 
less  than  one  ounce,  48  cents,  and  15  cents  for  each  one-half  ounce  ad- 
ditional. 

Upon  letters  and  packages  for  the  West  India  Islands  or  the  ports 
(m  the  Gulf  of  Mexico,  10  cents,  with  double  postage  if  they  exceeded 
one-half  ounce,  and  5  ceuts  for  every  half  ounce  additional,  with  the 
inland  postage  added  if  they  were  mailed  at  an  interior  post-ofifice. 

Upon  newspapers  and  other  second-class  matter  the  rate  was  3  cents 
per  ounce  to  all  ports,  with  inland  postage  added. 

For  distances  greater  than  3,000  miles  these  rates  were  doubled. 

TEN  years'  contracts  IN   1845. 

Under  the  authority  of  this  act  the  Postmaster- General  entered  into 
n  contract  for  ten  years  with  "The  Ocean  Steam  Navigation  Company" 
for  the  transportation  of  the  United  States  mails  to  Southampton, 
Havre,  and  Bremen.  The  arrangement  went  into  effect  in  1848,  and 
under  it  the  following  suras  of  money  were  annually  paid: 


Tear. 

Amount. 

Year. 

Amonnt. 

1848 

$100,  500 
200,  000 
200,  000 
16(5,416 
200,  000 

1853... 

$183, 333 
183,  333 
200.000 
200  000 

1849 

1854 

1860 

1851      .           

1855 

1856 

1862       .     .       ■- 

1 857 

200  000 

.,     .,      -.         .    . 

124 


TRADE    AND   TRANSPORTATION    BETWEEN 


And  it  may  be  said  that  daring  the  last  year  the  entire  sum  paid  for^ 
the  transportation  of  mails  to  all  ocean  ports  was  only  a  little  more 
than  double  the  amount  paid  for  the  service  to  these  three  ports  in  1849, 
although  the  foreign  commerce  of  the  United  States  has  increased  from 
$293,000,000  in  1849  to  $1,525,603,000  in  1888. 

Then  no  limit  was  placed  upon  the  amount  of  money  to  be  expended 
for  the  foreign  mail  service.  It  was  left  entirely  to  the  discretion  of 
the  Postmaster-General,  and  he  was  allowed  to  extend  it  "  whenever  in 
his  opinion  the  public  interests  would  be  promoted."  Now  he  is  limited 
by  Congress  to  a  fixed  sum. 

THE  ACT  OP  1848. 

On  the  3d  of  March,  1848,  another  law  was  passed  authorizing  the 
expenditure  of  $130,000  annually  under  similar  contracts  for  weekly 
mails,  "or  oftener  if  he  thinks  the  public  interests  require,"  to  the  ports 
of  Mexico  and  the  West  Indies,  and  he  was  authorized  to  use  a  naval 
vessel  if  necessary. 

During  the  last  year  the  sum  of  $1,062  was  paid  for  a  similar  service. 

The  same  act  of  March  3,  1848,  authorized  the  Postmaster- General  to 
make  a  contract  for  ten  years  for  the  establishment  of  a  regular  weekly 
service  between  the  United  States,  Havana,  and  the  Isthmus  of  Panama, 
for  which  $100,000  was  annually  appro[>riated. 

Last  year  we  paid  $20,153  for  a  similar  service  from  New  York. 

THE  ACT   OF   1851. 

Then,  on  the  3d  of  March,  1851,  a  general  law  was  passed  authorizing 
the  Postmaster-General  to  make  contracts  "  for  better  postal  intercourse 
with  foreign  countries  "  whenever  in  his  opinion  the  public  interests 
could  be  promoted. 

Under  this  authority  contracts  covering  a  period  of  eleven  years  were 
entered  into  between  the  Postmaster-General  and  M.  C.  Mordecai,  con- 
tractor for  the  conveyance  of  the  United  States  mails  between  the  ports 
of  Charleston,  Savannah,  Key  West,  and  Havana;  and  the  total  sum 
granted  in  compensation  for  said  service  amounted  to  an  aggregate  of 
$573,418.22,  amounting  to  annual  compensation  as  follows : 


Year.                           CorapenHation. 

1 

Year. 

Coinpeuaation. 

1849 

$35,  086. 22 
50,  OiiO.  00 
50,  000.  00 
50,  000.  00 
50,  000.  00 
50,  000.  00 

1855       

$58,  332. 00 

1850 

18.')0  

50,  000. 00 

1851 

1857 

60.  000. 00 

1852 

1858 

60,  000. 00 

1853 

1859 

60,000.00 

1854 

SERVICE  TO  FRANCE. 

Contracts  were  also  executed  between  the  Postmaster-General  and 
the  Ocean  Steam  Navigation  Company  for  the  conveyance  of  the  United 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


125 


states  mail  from  New  York  to  Havre,  for  which  the  sum  $1,000,378.19 
was  paid,  amountiug  to  annual  compensation  as  follows: 


Tear. 


1851 
1852 
1853 
1854 


Compensation. 


$73,  550. 00 
150,  000.  00 
150,  000.  00 
137,  500.  00 


Tear. 


1855 
1856 
1857 
1858 


Compensation. 


$1.')0,  000.  00 

no,  oof).  00 

149,  500.  00 
99, 828.  IS 


SERVICE   TO   LIVERPOOL. 


And  with  E.  K.  Collins  and  associates  for  the  conveyance  of  the 
CTnited  Slates  mails  between  New  York  and  Liverpool,  for  which  the 
sum  of  $5,212,091.89  was  paid,  amounting  to  annual  compensation  as 
follows : 


Tear. 

Compensation. 

Year. 

Compensation. 

1850 

$57,  750.  CO 
385,  000.  00 
621, 500. 00 
858,  000. 00 
858,  000.  00 

1855 

$858,  000.  00 
822,  000.  00 
501  256  89 

18.51 

1856 

1852 

1857 

1853 

1858 

250i  585. 00 

1854 

SERVICE   TO   PANAMA. 

Contracts  were  entered  into  with  C.  H.  Aspinwall  for  the  conveyance 
of  the  United  States  mails  between  San  Francisco,  Astoria,  and  Panama, 
agreeable  to  the  acts  of  March  3, 1847,  and  March  3, 1851,  for  which  the 
sum  of  $3,467,763.93,  was  paid,  amounting  to  annual  compensation  as 
follows  : 


Year, 

Compensation. 

Tear. 

Compensation. 

1850 

$308, 173.  62 
275, 425. 90 
357, 346.  41 
346,  250.  00 
348,  250. 00 
346,  379. 50 

1  1856 

$347,  650.  00 
348,  250.  00 
348,  250. 00 
348,  250.  00 
931  108  50 

1851 

1857 

18E2 

1858 

18.-)3 

1859 

1854 

1860 

1855 

SERVICE  TO  ASPINWALL. 


And  between  the  Secretary  of  the  Navy  and  George  Law  and  asso- 
ciates for  the  conveyance  of  the  United  States  mails  from  New  York  to 
Aspinwall,  for  which  the  sum  of  $2,889,510.79  was  paid,  amounting  to 
annual  compensation  as  follows: 


Tear. 

Compensation. 

Tear. 

Compensation. 

1848,  to  June  30, 1851.... 

$515,425.90 
276,  394. 18 
284,  500.  00 
289,  000. 00 
290, 000. 00 

1856 

$286,  600. 00 

288,  450.  00 

289,  000.  00 

290,  000. 00 
80, 130. 71 

1853 

1857 

1853        

1858 

1854     

1859 

1856 

1860 

126 


TRADE    AND    TRANSPORTATION    BETWEEN 


A   REMARKABLE   CONTRAST. 

As  a  contrast  between  the  mail  pay  of  our  West  India  steam-sbips  to- 
day and  that  of  forty  years  ago,  let  me  insert  here  the  following,  which 
explains  itself: 

Post-Office  Department,  Offick  of  Foreign  Mails, 

Jiashingtotr,  D.  C,  July 'io,  1889. 

Gentlemen  :  I  have  to  inform  you  that  the  Postfuasier-General  has  recognized  the 
service  of  American  steamers  Santiago,  City  of  Wanhingion,  Saratoga,  Niagara,  Cien- 
fiiegos,  City  of  Alexandria,  Manhattan,  City  of  Colum'bia,  City  of  Atlanta,  and  Stneda,  of 
the  New  York  and  Cuba  Mail  Line,  in  transporting  the  United  States  mails  from  New- 
York  to  Cuba  and  Mexico  during  the  quarter  ended  June  30,  1889,  at  the  sum  of 
$334. 80,  being  the  amount  of  the  United  States  sea  and  inland  postageson  the  mails 
conveyed  by  American  steamers,  calculated  at  $1.60  per  pound  for  letters  and  8  cents 
per  pound  for  newspapers,  etc.,  and  that  the  same  will  be  referred  to  the  Auditor  for 
payment  to  you  at  New  York,  N.  Y. 
The  separate  earnings  of  each  steamer  are  stated  on  the  sheets  hereto  annexed. 
I  am,  very  respectfully,  your  obedient  servant, 

S.  W.  Brooks, 
Acting  Superintendent  Foreign  Mails. 
Messrs.  James  E.  Ward  &  Co., 

Agents,  etc. 

THE  ACT   OF   1852. 

The  act  of  August  30,  1852,  provided  as  follows : 

Postmaster- General  authorized  to  contract  for  a  term  of  five  years  and  for  a  sum 
not  exceeding  $100,000  per  year  for  a  tri-monthly  mail  from  New  Orleans  via  Tampico 
to  Vera  Crnz  and  back  in  steam-vessels  not  less  than  500  tons  burden. 

And  was  the  authority  for  the  contract  between  the  Postmaster-General 
and  E.  H.  Carmick  for  the  conveyance  of  United  States  mails  from 
New  Orleans  to  Vera  Cruz,  for  which  the  sum  of  $167,584.96  was  paid, 
amounting  to  annual  payment  as  follows: 


Year. 


1853 
1854 

1855 


Compensar 

tiOD. 


$7,  750.  00 
37,  200. 00 
34,  003. 12 


Tear. 


1856 
1857 
1858 


Compensa- 
tion. 


$30,  515.  63 
29, 062. 32 
29,053.89 


THE   ACT    OF   1855. 


The  act  of  March  3, 1855,  provides  as  follows : 

Sec.  8.  Appropriation  for  transportation  of  mails  from  New  York  to  Liverpool  for 
year  ending  June  30,  185(i,  $819,500 ;  New  York  to  New  Orleans,  Charleston,  Savannah, 
Havana,  and  Chagres  and  back,  $2(51,000;  Panama  to  California  and  Oregon  and 
back,  $328,3.50;  for  carrying  out  contract  under  provisions  of  act  approved  August 
30,  lft52,  for  tri-monthly  mail  by  steam-vessels  from  New  Orleans  and  Vera  Cruz  via 
Tampico,  $09,750. 

Sec.  9.  Appropriation,  transportation  of  mails  in  two  steam-ships  from  New  York 
by  Sonthainptoii  to  Bremen  and  back,  $100,000  foi  each  sjhip,  and  in  two  steam-ships 
from  New  York  by  Cowes  to  Havre  and  back,  $75,000;  for  each  ship  under  contract 


THE    UNITED    STATES    AND    LATIN    AMERICA.  127 

with  Oregon  Steaiu  Navigation  Company,  of  Now  York,  for  $^550,000 ;  transportation 
from  Charleston  to  Havana,  |50,000;  across  Isthmus  of  Panama,  $150,000. 

Skc.  10.  Appropriated  to  supply  rleficieuces  from  New  York  to  Liverpool  and  back, 
$5r)9,238.6r> ;  from  New  York  to  New  Orleans,  Charleston,  .and  Savannah,  Havana  and 
Chagres  and  back,  $202,378.'2l  ;  from  Panama  to  California  and  Oregon  and  back 
$249,242.02. 

Skc.  11.  Appropriated  for  transportation  of  mails  ending  Juno  30,  18r)r>,  for  trans- 
portation of  mails  in  two  steam-ships  from  New  York  by  Southampton  to  Bremen, 
$100,000  for  each  ship,  and  in  two  steam-shijjs  from  New  York  by  Cowes  to  Havre  and 
back,  $7.5,000  for  each  ship,  under  contract  with  Oregon  Steam  Navigation  Company, 
of  New  York,  $350,000  ;  for  transportation  of  the  mails  between  Charleston  and 
Havana,  under  contract  with  M.  C.  Mordecai,  $50,000;  for  transportation  across  the 
Isthmus  of  Panama,  $120,000. 

Under  this  authority  the  followlDg  contract  between  the  Postmaster- 
General  and  the  Louisiana  and  Tehuantepec  Steam-shii)  Company  was 
made  for  the  conveyance  of  the  United  States  mails  from  New  Orleans 
to  San  Francisco  via  the  Isthmus  of  Tehuantepec,  for  which  the  sum 
of  $227,381.53  was  paid,  amounting  to  annual  compensation  as  follows : 

1859 $161,684.79 

1860 65,896.74 

THE  ACT   OF   1858. 

The  act  of  June  14, 1858,  restricted  the  compensation  to  the  postages 
on  the  mails  transported,  and  reads  as  follows : 

Sec.  1.  From  New  York  to  Liverpool  and  back,  $346,500,  and  it  is  provided  that 
there  be  paid  Post-OflSce  Department  out  of  said  appropriation  such  sums  as  may  be 
required  to  procure  the  transportation  of  the  mails  from  New  York  to  Liverpool  and 
back  ou  such  days  as  Collins'  Line  may  fail  to  take  them  from  New  York,  For  trans- 
portation from  New  York  to  New  Orleans,  Charleston,  Savannah,  Havana,  and  Chagres 
and  back,  $261,000.  For  transportation  from  Panama  to  California  and  Oregon 
and  back,  $328,350. 

Sec.  2.  Paid  to  Post-Office  Department  out  of  appropriation  of  $346,500,  granted 
first  section  of  act  of  March,  1857,  for  transportation  of  mails  from  New  York  to  Liv- 
erpool and  back,  $16,757.75,  for  five  outward  trips  from  New  York  to  Liverpool, 
*  *  *  when  Collins'  Line  failed  to  perform  service,  and  further  sum  $35,000  out  of 
aforesaid  appropriation  to  procure  transportation  of  mails  from  New  York  to  Liver- 
pool and  back,  on  24th  April,  8th  and  22d  of  May,  5th  and  19th  of  June,  1858,  if  Col- 
lins' Line  fails  to  perform  service. 

Sec.  3.  For  transportation  from  New  York,  by  Southampton  or  Cowes  to  Havre, 
$230,000.  For  transportation  between  Charleston  and  Havana,  $50,000.  For  trans- 
portation across  Isthmus  of  Panama,  $100,000. 

Sec.  4.  Postmaster-General  not  to  contract  for  carrying  mails  by  sea  for  more  than 
two  years,  nor  for  other  pay  than  sea  and  inland  postage. 

Sec.  5.  Postmaster-General  may  cause  mails  to  be  transported  between  the  United 
States  and  foreign  ports  by  steam-ship  for  the  sea  and  United  States  inland  postage 
and  sea  postage  only  if  by  a  foreign  vessel ;  preference  to  be  given  American  vessels. 

(Approved  June  14,  1858.     11  U.  S.  S.  at  L.,  364.) 

This  act  authorized  the  contracts  between  the  Postmaster-General 
and  the  following  companies  and  American  citizens  : 

SERVICE  TO  SOUTELA.MPTON  AND  BREMEN. 

Cornelius  Vanderbiit,  for  conveyance  of  United  States  mails  from  New  York  to  South- 
ampton and  Bremen,  for  which  iiayment  was  made  as  follows  : 

1658 $100,585.93 


128  TEADE    AND    TRANSPORTATION    BETWEEN 

SERVICE  TO  SOUTnAMTON  AND  HAVRE. 

Cornelius  Vanderbilt,  for  the  conveyance  of  the  United  States  mails  from  New  Vork 
to  Southampton  and  Havre,  for  which  the  sum  of  |260,144.55  was  paid,  amounting 
to  annual  compensation  aa  follows: 

18r)9 $104,283.65 

1860  119,365.20 

1861  36,495.70 

SBKVICE  TO  HAVANA  AND  KEW  ORLEANS. 

The  New  York  and  New  Orleans  Steam-ship  Company,  for  the  conveyance  of  United 
States  mails  from  New  York  to  Havana  and  New  Orleans,  for  which  the  sum  of 
$67,261.24  was  paid,  amounting  to  annual  compensation  as  follows: 

1859 $17,213.48 

1860 20,414.41 

1861 29,633.35 

SERVICE   TO   SOUTHAMPTON   AND    HAVRE. 

The  New  York  and  Havre  Steam-ship  Company,  for  the  conveyance  of  United  States 
mails  from  New  York  to  Southampton  and  Havre,  for  which  the  sum  of  $310,081.03 
was  paid,  amounting  to  annual  compensation  as  follows : 

1859 $94,977.44 

1860 94,489.77 

1861  87.104.12 

1862 33,509.70 

SERVICE  TO  SOUTHAMPTON  AND   HAVRE. 

The  North  Atlantic  Steam-ship  Company,  for  the  conveyance  of  the  United  States 
mails  from  New  York  to  South'ampton  and  Havre,  for  which  the  sum  of  $47,869 
was  paid,  amounting  to  annual  compensation  as  follows : 

1860  $14,294.73 

1861 33,574.27 

SERVICE   TO    HAVANA. 

M.  O.  Roberts,  for  the  conveyance  of  United  States  mails  from  New  York  to  Havana, 

for  which  the  sum  of  $23,556.55  was  paid,  amounting  to  annual  compensation  as 

follows : 

1860 $15,062.43 

1861 8,494.12 

SERVICE   TO   THE   ISTHMUS   AND   SOUTH   PACIFIC. 

Cornelius  Vanderbilt,  for  the  conveyance  of  the  United  States  mails  to  the  Isthmus 
and  South  Pacific,  for  which  the  sum  of  $69,892.56  was  paid,  amounting  to  auuual 
compensation  as  follows : 

1861 $8,001.26 

1862 17,912.91 

1863 15,078.26 

1864 14,208.51 

1865 14,691.62 

SERVICE   TO   HAVANA. 

Hargous  &,  Co.,  for  the  conveyance  of  the  United  States  mails  from  New  York  to 
Havana,  as  follows : 

1861  $11,894.75 


THE    UNITED    STA'l'ES    AND    J.AITN    AMERICA.  129 

SERVICE   TO    HAVANA. 

8])nrionl,  TiloHon  &  Co.,  for  tlie  conveyance  of  the  United  States  inailn  from  New 
York  to  Havana,  for  which  the  sum  of  $155,534.80  was  paid,  amounting  to  annual 
compensation  as  follows : 

1862 $22,290.47 

1863 34,600.88 

1864 26,769.10 

1865 34,417.29 

18G6 37,391.12 

SERVICE   TO   HAVANA. 

Lndlow,  ITcineken  &  Co.,  for  the  conveyance  of  the  United  States  mails  from  New 
York  to  Havana,  for  which  the  sum  of  $39,882.60  was  paid,  amounting  to  annual 
compensation  as  foHows  : 

1863 121,608.85 

1864 13,219.18 

1865 5,054.57 

SERVICE   TO   HAVANA. 

James  E.  Eaynor,  for  the  conveyance  of  the  United  States  mails  from  New  York  to 
Havana,  as  follows: 

1864 $5,331.85 

SERVICE   TO   THE   ISTHMUS   AND   SOUTH   PACIFIC. 

The  Atlantic  Steam-ship  Company,  for  the  conveyance  of  the  United  States  mails  to 
the  Isthmus  and  South  Pacific,  for  which  the  sum  of  $12,836.97  was  paid,  amount- 
ing to  annual  compensation  as  follows : 

1865 $7,769.57 

1866 5,067.40 

SERVICE   TO   HAVAJ^A. 

Smith  &  Dunning,  for  the  conveyance  of  the  United  States  mails  from  New  York  to 
Havana,  as  follows: 

1876  $14,936.42 

SERVICE   TO   HAVANA. 

Garrison  &  Allen,  for  conveyance  of  the  United  States  mails  from  New  York  to  Ha- 
vana, as  follows: 

1876 $8,184.15 

SERVICE   TO   HAVANA. 

The  American  and  Mexican  Steam-ship  Conii)any,  for  the  conveyance  of  the  United 
States  mails  from  New  York  to  Havana,  as  follows: 

1866 $6,130.63 

SERVICE   TO   HAVANA. 

The  West  India  Mails  Steam-ship  Company,  for  the  conveyance  of  United  States  mails 
from  New  York  to  Havana,  for  which  the  sum  of  $51,608.43  was  paid,  amounting 
to  annual  compensation  as  follows : 

1867 $28,310.29 

1868 23,298.14 

S.  Ex.  54 9 


130  TRADE  AND  TRANSPORTATION  BETWEEN 

SEBVICE  TO  HAVRE. 

The  New  York  and  Havre  Steam-ship  Company  (Isaac  Bell,  president),  for  the  con- 
veyance of  the  Uuiled  States  mails  from  New  York  to  Havre,  for  which  the  sum 
of  9153, 207. 43  was  paid,  amouutiug  to  annual  compensation  as  follows: 

1866 $49,162.65 

1867 73,052.92 

1868 30,984.86 

8ER\aCE   TO   BREMEN. 

Tlie  North  American  Lloyds  Steam-ship  Company,  for  the  conveyance  of  the  United 
Stat  OH  mails  from  New  York  to  Bremen,  for  which  the  sum  of  $24,838.21  was  paid, 
amouutiug  to  annual  compensation  as  follows: 

1866  $8,471.09 

1867 16,367.12 

SERVICE  TO  LIVERPOOL. 

The  Baltimore  and  Liverpool  Steam-ship.  Company,  for  the  conveyance  of  the  United 
States  mails  from  Baltimore  to  Liverpool,  for  which  compensation  was  made  as 
follows : 

1867 $6,500.77 

eBR\TtCE  TO   HAVANA. 

The  Atlantic  Steam-ship  Company,  for  the  conveyance  of  the  United  States  mails  from 
New  York  to  Havana,  for  which  the  sum  of  $226,775.09  was  paid,  amounting  to 
annual  compensation  as  follows : 

1868 $16,278.86 

1869 ■ 62,847.18 

1870 60.802.06 

1871 35,484.00 

1872 1 35,4.56.60 

1873 15,906.39 

SERVICE  TO  THE  ISTHMUS  AND  SOUTH  PACIFIC. 

The  Pacific  Mail  Steam-ship  Company,  for  the  conveyance  of  United  States  mails  to 
the  Isthmus  and  South  Pacific,  for  which  the  sum  of  $256,030.38  was  paid,  amount- 
ing to  annual  comiiousation  as  follows : 

1866 $12,310.05 

1867 22,921.33 

1868 19,476.89 

1869 7,907.86 

1871 21,76.'-).97 

1872 24,576.22 

1873 27,571.78 

1874 26,2,56.50 

1875 27,728.74 

1876 16,104.52 

1877 15,115.07 

1878 19,237.01 

1879 .,,.,,..,., 14,958.44 


THE    UNITKl)    HTATIOS    AND    LATIN    AMERICA.  131 

SEIiVICE   TO    HAVANA   AND   VERA    CRUZ. 

The  New  York,  Havana  and  Mexican  Steara-sbip  Company,  for  the  conveyance  of 
tlie  United  States  mails  from  New  York  to  Havana  and  Vera  Cruz,  for  which  the 
sum  of  $14d/J40.43  was  paid,  amounting  to  annual  compensation  as  follows ; 

1871  $7,770.67 

1872 11,178.57 

1873 27,137.39 

1874 33,828.83 

1875 31,920.14 

1876 12,859.89 

1877 11,675.30 

1878 5.954.07 

1879 6,615.57 

SERVICE   TO   HAVANA. 

The  New  York  and  Havana  direct  line  for  the  conveyance  of  United  States  mails  from 
New  York  to  Havana,  for  which  the  sum  of  $31,439.46  was  paid,  amounting  to  an- 
nual comijensation  as  follows: 

1875 $20,069.16 

1876 6,113.98 

1877 5,256.32 

SERVICE  TO  JAPAN  AND  CHINA. 

The  Pacific  Mail  Steam-ship  Company,  for  the  conveyance  of  the  United  States  mails 
from  San  Francisco  to  Japan  and  China  and  Australia,  for  which  the  sum  of  $17,592.69 
was  paid,  amounting  to  annual  compensation  as  follows : 

1878 $8,017.83 

1879 A 9,574.86 

A  temporary  contract  was  entered  into  by  the  Postmaster-General  and 
Cornelius  Yanderbilt  for  tlie  conveyance  of  the  United  States  mails 
from  New  York  to  New  Orleans  and  San  Francisco,  via  Havana  and 
Aspinwall,  from  October  1,  1859,  to  June  30,  1860,  for  which  the  sum 


of  1187,500  was  paid. 


THE  ACT  OF  1860. 


The  act  of  June  15,  1860,  authorized  thePostmaster-General  to  cause 
mails  to  be  transported  between  the  United  States  and  any  foreign  port 
or  ports,  or  between  any  port  of  United  States  and  any  other  port  of 
United  States,  touching  at  foreign  ports,  by  steamship;  allowing  and 
paying  therefor,  if  by  an  American  vessel,  the  sea  and  inland  United 
States  postage ;  if  by  foreign  vessel,  sea  postage  only.  Preference  given 
American  steam-ships. 

The  act  of  February  19,  1861,  appropriated  for  carrying  mails  from 
New  York,  via  Panama,  to  San  Francisco,  three  times  a  month,  from 
July  1,  1860,  to  July  1,  1861,  at  a  rate  of  $350,000  per  annum,  which 
(sum  shall  be  deducted  from  amount  of  postage  received  oa  said  route. 


132 


TRADE    AND    TliANSPOKTATION    BETWEEN 


This  was  authority  for  a  coutract  between  the  Postmaster-General 
and  Cornelius  Vauderbilt  tor  the  conveyance  of  the  United  States 
mails  from  New  York  to  !San  Francisco,  via  Panama,  for  which  a  com- 
pensation of  $350,000  was  made. 

THE  ACT   OF   1864. 

The  act  of  May  28,  1864,  authorized  monthly  mail  communication  be- 
tween Brazil  by  first-class  sea-going  steam-ships,  not  less  than  2,000 
tous  burden,  sufficient  in  number  to  perform  twelve  round  trips  or  voy- 
ages per  annum  between  a  port  of  the  United  States  north  of  Potomac 
Eiver  and.  Rio  Janeiro  in  Brazil,  touching  at  St,  Thomas,  at  Bahiu, 
Pernambuco;  expense  to  be  divided;  portion  of  the  United  States 
not  to  exceed  $150,000  per  year  for  twelve  trips ;  the  Postmaster-Gen- 
eral to  invite  proposals  and  contracts  to  lowest  responsible  bidder  for  a 
term  of  ten  years,  to  go  into  eflect  September  1, 1865 ;  steam-ships  to  be 
mostapprov^ed  model,  etc. ;  steam-ships  to  be  exempted  from  port  charges 
and  custom-house  dues  at  port  of  departures  and  arrival  at  the  United 
States,  provided  similar  exemption  is  granted  by  Brazil. 

THE   SERVICE   TO  BRAZIL. 

This  was  authority  for  a  contract,  covering  a  period  of  ten  years,  be- 
tween the  Postmaster-General  and  the  New  York  and  Brazil  Steam-ship 
Company  for  the  conveyance  of  the  United  States  mail  from  New  York 
to  St.  Thomas  and  Rio  de  Janeiro,  for  which  a  sum  of  $1,500,000  was 
paid,  amounting  to  an  annual  compensation  as  follows : 


Year. 


1861) 
1867 
1868 
1869 
1870 
1871 


Compen- 
sation. 


$112, 500 
150,  000 
150,  000 
150,000 
150,  000 
150, 000 


Tear. 


1872 
1873 
1874 
1875 
1876 


C  cm  pea- 
sation. 


$150,  000 
150,  000 
150,000 
150,000 
37, 500 


SEBVIOB  TO   CHINA  AND  JAPAN, 

The  acts  of  February  17,  1865,  and  February  18,  1867,  authorized 
tlie  Postmaster-General  to  invite  proposals  for  mail  steam-ship  service 
between  the  United  States  and  China  and  Japan,  from  San  Francisco, 
monthly  trips ;  lowest  responsible  bidder  to  have  contract  for  ten 
years;  bids  from  all  citizens,  and  not  to  call  for  over  $500,000  per  year 
for  twelve  round  trips,  nor  unless  by  a  citizen  of  the  United  States, 
and  accompanied  by  offer  of  good  sureties ;  contract  to  go  into  eftect 
January  1,  1867 ;  ships  constructed  on  best  approved  model,  subject 
to  inspection  by  Secretary  of  Navy  and  Postmaster-General. 


THE  UNITED  STATES  AND  LATIN  AMERICA. 


133 


THE   PACIFIC   MAIL   SUBSIDY. 

The  act  of  February  18, 18G7,  appropriated  for  mail  steamship  service 
between  the  United  States  and  Brazil  $150,000,  and  for  mail  steam-ship 
service  between  San  Francisco,  Japan,  and  China,  $500,000,  to  be  by 
American  vessels.  Under  this  authority  a  contract  was  made  between 
the  Postmaster-General  and  the  "  Pacific  Mail  Steam-ship  Company," 
covering  a  period  of  ten  years,  for  the  conveyance  of  the  United  States 
mails  from  San  Francisco  to  China  aud  Japau  via  the  Sandwich  Islands, 
for  which  service  the  sum  of  $4,583,333.32  was  paid,  amounting  to  an 
annual  compensation  as  follows : 


Year. 

Compenaa- 
tion. 

Year. 

Compensa- 
tion. 

1867 , 

$83,  333.  33 
291,  666.  66 
458,  333.  33 
500,  000. 00 
500, 000.  00 
500, 000. 00 

1873 

$500, 000.  00 

1868 ; 

1874 

500,  000.  00 

1869          

1875 

500,  000.  00 

1870 

1876 

500,  000.  00 

1871     

1 877 

250,  000. 00 

1872 

THE   HAWAIIAN  ISLANDS  SUBSIDY. 

The  act  of  March  2,  1867,  authorized  the  Postmaster-General  to  ad- 
vertise for  proposals  for  monthly  steam-ship  service  between  San  Fran- 
cisco and  Honolulu,  by  means  of  first-class  American  sea-going  steam- 
ships not  less  than  1,000  tons  burden,  to  be  given  to  the  lowest  bidder, 
but  no  bids  considered  which  amount  to  more  than  $75,000  for  twelve 
round  trips,  to  be  made  by  American  citizens,  with  good  sureties. 

This  was  authority  for  a  contract  between  the  Postmaster  General 
and  the  California,  Oregon,  and  Mexican  Steam-ship  Company,  for  the 
conveyance  of  the  United  States  mails  from  San  Francisco  to  Hono- 
lulu, for  which  the  sum  of  $425,000  was  paid,  amounting  to  an  annual 
compensation  as  follows : 


Years. 

Compensa- 
tion. 

Years. 

Compensa- 
tion. 

1868 

$56, 250 
68,  750 
62,  500 
75, 000 

1872 

$7.5,  000 

1869 

1873 

75,  000 

1870      

1874 

12,  500 

1871 

134 


TRADE    AND    TRANSPORTATION    BETWEEN 


In  18G4  Congress  passed  what  was  known  as  "  The  Compulsory  Act," 
which  required  all  steam-ships  bearing  the  flag  of  the  United  States  to 
accept  mails  from  an}'  port  in  this  country  or  from  any  foreign  port  to 
the  United  States  before  they  could  obtain  a  clearance,  and  their  com- 
pensation was  limited  to  sea  postage,  which  at  that  time  was  as  follows: 

THE  OLD  RATES  OF  POSTAGE. 

Bates  of  postage  from  the  United  States  before  the  adoption  of  the  uniform  rate  under  the 

postal  union  system. 


Newspapers. 

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t  Domestic  rates,  adding  1  cent  for  each  newspaper,  and  1  cent  per  ounce  on  other  printed  mattor. 


THE  REDUCTION  OP  OCEAN  POSTAGE  IN  1874. 

In  1874  the  United  States  entered  what  is  known  as  the  Postal 
Union,  under  which  postage  was  fixed  at  5  cents  per  one-half  ounce 
to  every  port  in  the  world,  and  the  compensation  paid  for  the  transi)or- 
tation  of  the  mails  was  thereby  greatly  reduced.  The  steamers  to  Japan 
were  paid  8  cents  less  i>er  letter ;  to  Australia  via  the  Suez  Canal  14 
cents  less,  and  via  Brindisi  20  cents  less  ;  to  Panama  the  compensation 
was  reduced  8  cents ;  to  Brazil  18  cents  ;  to  Buenos  Ayres  IC  cents,  and  to 
Callao  and  Valparaiso  20  cents — for  the  steamship  companies  received 
but  2  cents  per  letter,  that  being  the  diilerence  between  inland  and 
foreign  postage,  and  no  distinction  was  made  for  the  distance  a  letter  was 
carried. 

It  was  never  intended  to  make  this  reduction  of  postage  at  the  ex- 
pense of  the  steam-ship  companies,  but  nevertheless  they  alone  suft'ered, 
for  Congress,  when  the  Berne  treaty  was  ratified,  made  no  change  in  the 


THE    UNITED    STATES    AND    LATIN    AMERICA.  135 

law  fixing  tlie  compensation  for  the  transportation  of  ocean  mails,  and 
lias  made  none  since. 

In  the  winter  of  1884  the  compulsory  law  was  repealed.  The  re[)Oits 
of  the  South  American  Commission  awakened  an  interest  in  the  exten- 
sion of  our  trade  and  Congress  made  an  effort  to  be  fair.  A  joint  select 
committee  on  American  sliipping  was  appointed,  which,  after  spending 
several  months  in  an  examination  of  the  subject,  reported  as  follows: 

REPORT   OF   THE   COMMITTEE   ON  AMERICAN   SHIPPING. 

The  law,  as  it  exists  (section  3976,  Rev.  Stat.),  compels  the  master  of  every  Ameri- 
cau  vessel  eiijragod  in  the  foreign  trade  to  carry  such  United  States  mails  as  may  be 
tendered  bim  by  the  Post-OfBce  Department,  and  allows  him  as  compensation  for 
Buch  service  a  sum  not  exceeding  2  cents  per  letter  carried.  In  no  case  is  this  an 
adequate  compensation,  and  in  some  instances  it  does  not  pay  the  cost  to  the  vessel 
of  delivering  the  mails  at  the  post-oflice  in  the  port  of  arrival.  The  pay  to  United 
States  vessels  in  the  foreign  trade  for  transporting  the  mails  in  1880  was  only  2^ 
cents  per  mile,  while  at  the  same  time  the  steamers  on  our  coast  which  contracted 
to  carry  the  mails  received  57^  cents  per  mile  for  mail  service.  The  contrast  be- 
tween our  inadequate  mail  pay  to  American  vessels  engaged  in  the  foreign  trade  and 
the  very  liberal  mail  pay  given  by  Great  Britain  to  her  steam-ship'lines  only  serves 
to  »how  more  clearly  the  injustice  and  lack  of  wisdom  of  our  policy.  Since  1840 
England  has  paid  more  than  $250,000,000  for  mail  service,  with  the  deliberate  purpose 
of  establishing  and  maintaining  steam-ship  lines  to  connect  the  United  Kingdom  with 
all  ports  of  the  world.  Even  in  the  last  year  she  paid  about  $3,000,000  to  her  steam- 
ship lines  for  mail  service,  which  was  $1,641,300  more  than  she  received  from  mail 
matter  transported  by  them. 

THE   ''COMPULSORY"  LAW. 

This  report  also  called  attention  to  the  remarkable  fact  that  sections 
3976  and  4203  provided  that  no  American  ship  bound  to  or  Irom  a  for- 
eign port  could  obtain  a  clearance  until  it  had  taken  on  board  any  mail 
which  should  be  offered  it  either  by  the  United  States  Government  or 
any  of  its  representatives,  so  that  American  steam-ship  companies 
were  obliged  to  call  for  mails  at  all  post-offices  at  i)orts  of  departures, 
and  deliver  them  at  all  post-offices  at  the  ports  of  entry  at  their  own 
expense. 

The  payment  which  the  carrier  was  entitled  to  receive  was  2  cents 
per  letter,  irrespective  of  weight  or  the  distance  it  might  be  transported, 
or,  at  the  option  of  the  Government,  the  carrier  might  receive  the  sea 
postage,  amounting  to  about  1§  cents  per  half  ounce — this  payment 
being  also  made  without  regard  to  the  extent  or  character  of  the  service 
rendered. 

Comi)ulsory  laws  did  not  apply  to  foreign  ships  plying  between 
American  and  foreign  ports,  which  in  many  instances  were  heavily  sub- 
sidized, nor  to  American  ships  engaged  in  the  coastwise  trade,  which 
are  by  law  kept  free  from  competition  from  foreign  ships.  Foreign 
steamers  earned  from  the  United  States  Government,  in  some  instances^ 
as  much  as  80  cents  per  mile  for  mail  service  i)erformed  by  them,  and 


136         TRADE  AND  TRANSPORTATION  BETWEEN 

single  lines  of  Anioi'ic;ui  ships  engaged  in  the  coastwise  trade  earned 
as  nuich  for  mail  service  as  all  the  American  foreign-bound  steamships 
put  together,  so  that  in  the  year  1JS84  the  i)roscribed  American  steam- 
ships, foreign  bound,  received  for  an  aggregate  mileage  of  1,750,000 
miles  the  sum  of  $50,000,  or  about  three  cents  a  mile,  while  at  the  same 
time  the  Government  paid  over  $."^50,000  to  foreign  ships  for  carrying 
the  mails  over  only  a  slightly  greater  distance,  and  American  coast- 
wise steamers  earned  an  average  of  about  C6  cents  per  mile. 

SOME  INTERESTING   FIGURES. 

In  the  course  of  debate  it  was  developed  that  the  compensation  of 
the  principal  railway  routes  was  from  $375  to  $1,155  per  mile  per  an- 
num, and  that  of  the  routes  of  smaller  importance  from  $45  to  $350 
pel-  annum  ;  that  of  the  thousands  of  railway  routes  only  two  hundred 
or  three  hundred  earned  the  compensation  paid  by  the  Government, 
and  that  it  was  likewise  true  that  in  a  great  majority  of  cases  postage 
on  the  mails  carried  on  the  railroads  fell  very  far  short  of  reimbursing  the 
Government  for  the  cost  of  service  over  them ;  that  in  the  payment  for 
internal  steam-boat  service,  upon  star  routes,  stage-coaches,  and  other 
m^ans  of  transportation,  millions  of  dollars  were  yearly  expended,  for 
which,  probably,  in  no  single  instance,  was  the  Government  compen- 
sated by  the  jjostage  received. 

THE   FACTS   IN   THE   CASE. 

It  seemed  to  be  generally  conceded  that  the  service  to  be  rendered 
by  American  ships  engaged  in  the  foreign  trade  for  carrying  the  mail 
should  be  paid  for  on  the  basis  of  the  distance  actually  traveled,  rather 
than  upon  the  basis  of  the  amount  of  mail  actually,  carried,  for  the  fol- 
lowing, among  other  reasons : 

(1)  American  mail  carriers  meet  with  the  competition  of  foreign  ships 
usually  heavily  subsidized,  and  all  operated  at  far  less  expense  than 
American  ships  could  be,  the  latter  being  obliged  to  pay  larger  wages 
to/)fficers  and  men  and  to  afford  better  subsistence  to  their  crews. 

(2)  American  ships  which  contracted  to  carry  the  mails  would  prob- 
ably be  obliged,  by  the  terms  of  their  contract,  to  perform  the  service 
at  prescril)ed  rates  of  speed  and  at  specified  and  regular  days,  so  that 
the  transit  should  be  performed  by  them  whether  freight  and  passenger 
traffic  were  obtained  or  not. 

(3)  Unlike  railroads,  which  can  and  do  build  up  large  local  business 
in  addition  to  the  through  business  between  termini,  the  mail-carrying 
steam  ship,  besides  running  much  greater  risks  than  a  railroad,  nuist 
rely  solely  on  its  through  business,  and  can  make  no  earnings,  but  only 
large  disbursincnts  during  trii)s,  which,  in  the  case  of  ships  engaged  in 
the  Australian  and  Chinese  trade,  cover  a  period  of  twenty-six  days. 

(1)  Tlie  mileage  basis  is  that  which  has  been  assume<l  by  all  the  lead- 
ing nations  in  making  contracts  of  a  similar  nature.     And 


THE    UNITED    STATES    AND    LATIN    AMERICA.  loi 

Fhiwlly.  Tlie  weight  of  mail  or  number  of  letters  carried,  it  was  con- 
<«'(lc(l  was  no  fair  criterion  of  the  amount  of  payment  to  be  made  since 
the  II mount  of  mail  matter  carried  to  Central  and  S(juth  American, 
IMexiean,  Pacific,  and  Sonth  Pacific  ports,  the  places  with  whicli  it  was 
most  desirable  tha;t  commerce  should  be  maintained,  would  necessarily 
for  many  years  be  comparatively  small  while  the  distance  traversed 
would  be  very  great. 

These  reasons  appeared  so  cogent  that  when  the  bill  was  originally 
reported  to  the  Senate  that  committee  unanimously  recommended  that 
the  Postmaster-General  be  authorized  to  enter  into  contracts  with  Amer- 
ican steam-sbips  engaged  in  the  foreign  trade,  and  to  pay  them  not  ex- 
ceeding $1  a  mile  for  the  trip  outward  and  inward,  and  this  provision 
passed  the  Senate,  after  several  days  of  discussion,  by  a  vote  of  45  to  11. 

REPORT   OF   THE   SHIP-BUIJLDING  COMMITTEE. 

The  Special  Committee  on  Ship-Building  and  Ship-Owning  Interests 
of  the  House  of  Eepresentatives,  of  which  General  Slocum  was  chair- 
man, unanimously  reported,  through  Mr.  Hunt,  of  Louisiana,*  a  bill  em- 
bodying the  substance  of  the  Senate  amendment  above  referred  to  and 
which,  although  at  the  head  of  the  Calendar  and  made  an  early  special 
order,  failed  to  be  reached  for  consideration.  Its  substance,  however, 
was  embodied  as  a  part  of  the  Post- Office  Appropriation  bill,  but  being 
by  many  members  of  the  House  believed  not  to  be  germane  to  that  bill 
and  for  other  reasons  was  defeated  by  a  voted  of  130  to  112.  This  ap- 
propriation bill,  when  it  came  to  the  Senate,  was  amended  by  a  provis- 
ion as  follows : 

THE   ACT   OF   1885. 

For  transportation  of  foreign  mails,  including  transit  across  the  Isthmus  of  Pan- 
auiu,  $800,000.  And  the  Postmaster-General  is  hereby  authorized  to  enter  into  con- 
tracts for  the  transportation  of  any  part  of  said  foreign  mails,  after  legal  advertise- 
ment, with  the  lowest  responsible  bidder,  at  a  rate  not  exceeding  50  cents  a  nautical 
iiiiie  on  the  trip  each  way  actually  traveled  between  the  terminal  points,  i)rovided 
that  the  mails  so  contracted  shall  be  carried  on  American  steam-ships,  and  that  the 
aggregate  of  such  contracts  shall  not  exceed  one-half  of  the  sum  hereby  appropriated. 

In  the  course  of  debate  upon  this  amendment,  which  passed  the  Sen- 
ate by  a  vote  of  30  to  18,  it  was  demonstrated  that  the  revenue  of  the 
Government  from  its  foreign  mails  for  the  year  1884  was  $2,157,022.63, 
the  expenditures  entailed  therein  $362,804.22,  leaving  as  a  net  rev- 
enue, without  charge  for  estimated  cost  of  interior  service,  the  sum  of 
$1,794,818.41.  It  was  claimed  that  this  was  not  entirely  a  profit  to 
the  Government,  because  the  estimated  cost  of  interior  domestic  mail 
service  should  be  deducted.  This  was  estimated  at  $1,009,080.59,  leav- 
ing, at  the  very  least,  a  profit  to  the  Government  upon  its  foreign  mail 
service  of  $725,728.82.  That  this  overplus  (the  only  overplus  existing 
in  the  mail  business  of  the  Government)  should  be  devoted  in  part  to 
the  encouragement  of  commerce  was  believed  to  be  only  fair. 
*  The  full  report  will  be  found  in  the  Appendix. 


138  TRADE    AND    TRANSPORTATION    BETWEEN 

PROFITS   TO   THE   GOVEBNMENT   ON  FOREIGN   POSTAGE. 

As  an  example  of  how  this  profit  is  earued  by  the  Goverunient,  and 
as  a  fit  illustration  of  the  policj'^  of  the  United  States  as  distinguished 
from  that  pursued  by  other  Governments,  the  following  instance  was 
referred  to,  and  may  be  cited  : 

In  1875  a  postal  contract  was  entered  into  between  the  Colonial  Govern- 
ments of  Xew  Zealand  and  New  South  Wales  and  the  Pacific  Mail  Steam- 
ship Company,  whereby  the  former  agreed  to  pay  the  latter  a  subsidy 
of  $400,000  per  annum  for  a  monthly  service  of  four  ships  to  be  main- 
tained between  San  Francisco  and  the  colonies.  This  subsidy  was  paid 
for  the  transportation  of  the  colonial  mails  to  America,  and  the  British 
overland  mails  from  San  Francisco  to  the  colonies.  With  this  large 
payment  the  line  was  just  about  self-sustaining.  Without  it  it  could  not 
have  existed.  The  Government  of  the  United  States  paid  for  its  outward 
mails  for  six  months  the  amount  of  $5,802.82.  The  United  States  Govern- 
ment received  for  letters  to  the  colonies  12  cents  per  half  ounce,  and  for 
newspapers  2  cents  per  half  ounce.  It  paid  to  the  Pacific  Mai4  Company 
G  cents  per  half  ounce  on  letters  and  nothing  upon  newspapers,  so  that 
during  the  year  1884  the  amount  of  postage  receiv^ed  by  the  Government 
on  United  States  mail  sent  from  San  Francisco  to  Australian  colonies  was 
$30,479.30.  The  whole  amount  paid  for  transportation  was  $11,479.68, 
leaving  a  net  profit  to  the  Government  of  $24,999.62. 

THE  AUSTRALIAN  MAIL  SERVICE. 

The  United  States  received  from  the  British  Government  for  the 
transportation  of  the  Australian  British  closed  mails,  conveyed  between 
Few  York  and  San  Francisco,  6  francs  per  kilogram  for  letters,  2  francs 
per  kilogram  for  papers,  or  52.J  cents  per  pound  for  letters  and  17i  cents 
per  pound  for  papers.  Out  of  this  the  Government  paid  to  overland 
roads  for  transportation  of  the  mail,  which  it  never  opened,  handled,  or 
inspected,  only  the  sum  of  26  cents  per  pound  for  letters,  pocketing  the 
residue  and  paying  not  one  cent  to  the  steam-ship  company  for  the  con- 
veyance of  the  mails  from  San  Francisco  to  Australia,  so  that  the 
Government  earned  a  clear  i)rofit  of  20i  cents  per  pound  on  the  mails 
for  doing  nothing.  The  overland  railroads  received  26  cents  per  pound 
for  carrying  the  mails  3,000  miles,  and  the  Pacific  Mail  Steam-shii)  Com- 
pany, for  transporting  them  7,000  miles  from  San  Francisco  to  Aus- 
tralia, received  nothing  from  this  Government,  so  that  it  may  be  fairly 
estimated  that  at  every  departure  of  a  Pacific  Mail  steamer  from  the 
port  of  San  Francisco  for  Australia  the  Government  realized  a  profit 
of  $5,000  and  upwards. 

THE  VENEZUELA  SERVICE   COMPARED 

The  pay  given  to  the  Ked  "  U  "  line  during  the  same  year  will  also 
aflford  a  fair  illustration  of  the  inadequacy  of  compensation.     It  per- 


THE    UNITED    STATES   AND   LATIN   AMERICA.  130 

formed  thirty-one  trips,  traveled  127,800  miles,  received  $1,236.40, 
equal  to  about  1  cent  per  mile,  or  $10  for  each  round  trip  of  4,260  miles, 
or  $8  for  each  of  the  five  ports  called  at.  The  entire  sea  and  inland 
postage  proffered  by  the  Postmaster-General  for  future  service  would 
not  quite  triple  this  sum,  and  would  be  about  $24  for  each  port. 

The  Senate  amendment  passed  the  House  by  a  vote  of  98  to  89,  and 
a  motion  to  reconsider  was  voted  down  by  yeas  102,  nays  79.  . 

The  appropriation  of  $800,000  was  not  available  until  the  commence- 
ment of  the  new  fiscal  year,  July  1,  1885.  The  repeal  of  the  compul- 
sory law  took  effect  on  the  1st  of  April  preceding*.  The  steam-ship 
companies  were  not  obliged  to  receive  the  mails,  but  continued  to  carry 
them  at  the  compensation  formerly  paid,  which,  in  several  instances, 
did  not  re-imburse  them  for  their  expenditures  for  cartage  and  lighter- 
age. 

POSTMASTER-GENERAL  VILAS  REFUSES  TO  CARRY  OUT  THE  LAW. 

Representatives  of  several  of  the  steam-ship  companies  called  upon 
the  Postmaster-General  to  ascertain  the  policy  he  intended  to  pursue 
and  were  encouraged  to  believe  that  he  would  give  them  the  same  op- 
portunity to  bid  for  the  service  as  was  annually  granted  to  inland  and 
coastwise  steamers.  But,  a  few  days  before  the  1st  of  July,  without 
any  notice  to  the  companies  whatever,  a  communication  appeared  in  the 
newspapers  stating  that  the  Postmaster-General  would  decline  to  carry 
out  the  act  of  1885.  His  objection  appeared  to  be  mainly  that  the 
amount  of  the  appropriation  being  only  $400,000,  and  the  service  per- 
formed by  the  American  steamers  during  the  preceding  year  nearly 
2,000,000  of  miles,  it  was  apparent  that  if  the  full  allowance  of  50  cents 
I^er  mile  was  to  be  made  to  all  lines  that  the  appropriation  would  be 
greatly  exceeded. 

To  remove  this  embarrassment,  the  representatives  of  the  Brazil  Line, 
the  Pacific  Mail  Steam-ship  Line,  the  Eed  "  D  "  Line,  the  Kew  York  and 
Cuba  Mail  Steam-ship  Company  Line,  the  New  York,  Havana  and  Mexi- 
can Line,  the  lines  to  the  Sandwich  Islands,  and  the  Clyde  Lines  called 
together  upon  the  Postmaster-General  to  suggest  that  he,  in  his  adver- 
tisement, restrict  all  contracts  to  a  maximum  not  exceeding  20  cents 
per  mile,  so  that  even  if  every  steam-ship  line  should  receive  a  contract 
for  the  year  the  appropriation  would  not  be  exceeded. 

THE   STEAM-SHIPS  REFUSE  TO   CARRY  THE  MAILS. 

When  the  representatives  of  the  companies  left  Washington,  no  offer 
or  suggestion  as  to  the  compensation  which  the  Government  intended 
to  pay  was  made,  and  the  companies  might  then  have  refrained  from 
continuing  the  carriage  of  the  mails.  Instead  of  this,  they  permitted 
their  vessels  to  be  placed  upon  the  Government's  schedule  for  the  month 
of  July  at  the  old  rates,  and  sent  a  communication  stating  that  they 


140         TRADE  AND  TRANSPORTATION  BETWEEN 

expected  on  or  before  the  15tli  of  July  to  receive  some  intiuiation  from 
the  Postmaster-General  as  to  the  course  ho  intended  to  pursue,  so  that 
if  no  arranj^emeut  was  arrived  at  by  that  time  the  companies  might 
refrain  from  carrying  the  mails  after  the  1st  of  August  without  injury 
to  the  public. 

About  the  15th  day  of  July  the  Postmaster-General  protested  against 
their  notification,  but  made  no  definite  suggestion  as  to  the  rate  ofcom- 
l)ensation.  The  companies  then  acted  individually,  some  ofleriug  to  take 
the  mail  at  what  would  have  been  equiv'aleut  to  about  20  cents  per 
mile,  others  asking  for  more  definite  information,  and  about  the  end 
of  the  month  they  were  informed  that  in  lieu  of  the  rates  previously 
paid  the  Postmaster-General  would  give  the  sea  and  inland  postage  on 
mail  actually  transported.  When  a  suggestion  of  this  character  had 
previously  been  made  to  representatives  of  these  companies  at  Wash- 
ington they  had  unanimously  declined  it. 

A  CONTRACT  WITH  FOREIGN  POWERS. 

As  has  been  stated,  the  sea  and  inland  postage  when  the  compulsory 
law  was  passed  was  40  cents  to  half  the  foreign  ports,  25  cents  to 
China  and  Japan,  and  30  cents  to  Australia.  The  great  nations  of  the 
earth  met  at  Paris  and  at  Berne,  agreed  upon  postal  regulations,  and 
cut  down  the  sea  and  inland  postage  to  about  5  cents  per  half  ounce. 
This  was  conceded  as  an  international  courtesy,  and  as  a  boon  to  the 
people  of  the  world.  No  one  pretended  that  this  act  of  generosity  should 
be  made  at  the  expense  of  the  carrier.  Every  other  nation  except  the 
United  States  entered  into  fair  arrangements  with  the  carriers  foi-  the 
transportation  of  tbe  mail,  entirely  irrespective  of  the  postage  ])ai(l 
thereon.  Austria  jiaid  5,000,000  francs  per  annum ;  England,  15,000,000 
francs  per  annum  ;  France,  32,000,000  francs  per  annum  ;  Spain,  5,000,- 
000 francs;  Belgium,  1,000,000  francs;  Holland,  2,000,000 francs;  Italy, 
8,000,000  francs. 

The  United  States  took  the  5  cents  for  each  letter,  and  arbitrarily 
gave  one-third  of  it  to  the  American  steam-ships,  entirely  indifferent  as 
to  the  extent,  character,  regularity,  or  nature  of  the  service  rendered, 
paying  as  much  from  Key  West  to  Havana,  or  from  Boston  to  Halifiix, 
a^  from  San  Francisco  to  China  or  from  New  York  to  Brazil. 

AMERICAN   STEAMERS  TAKE  THE  MAILS,  BUT   DECLINE  THE  PAY. 

Several  of  the  steam-ship  companies  declined  to  accept  that  payment 
and  refused  to  receive  the  mails.  Others  took  the  mails  as  before,  but 
returned  their  compensation  checks  to  the  Post-OflBce  Department  on 
the  ground  that  they  were  inadequate,  and  appealed  to  Congress  for 
just  compensation.  Thus  far  it  has  not  been  granted.  Tlie  Senate  has 
passed  several  bills  for  that  purpose,  but  the  House  of  Representatives 
has  declined  to  concur  in  them. 

Where  the  American  ships  de<;lined  to  take  the  mails,  the  Postmas- 


THti   tJNitED    STATES   AND    LATIN    AilERICA.  141 

ter-Geiienil  intrusted  theiu  to  foreign  vessels,  usually  "tramps,"  which 
hati  no  regular  sailing-  days,  and  whose  voyages  werealways  indefinite. 
There  was  so  much  inconvenience  suflenid  by  the  merchants  engaged  in 
trade  with  Central  and  South  America  that  the  next  year  the  steam- 
ships consented  to  carry  the  mails,  trusting  to  Congress  to  grant  them 
just  compensation. 

The  tieatment  of  their  Qommercial, marine  by  JEngland,  France,  and 
other  nations  in  the  payment  for  mail  transportation  is  in  striking  con- 
trast with  that  of  the  United  States^ 

OITR  PAOli'IO  OCEAN  SERVICE. 

Concerning  out  Pacific  Ocean  service,  Mr.  H.  Blackiston,  a  wealthy 
merchant  of  New  South  Wales,  recently  remarked  to  the  rei^orter  of  a 
San  Francisco  paper  :  ,,,, 

You  eee  we  have  four  regular  Hues  of  steamers — the  Orient,  the  Messageries,  the  P. 
and  O.,  and  the  German— all  ydying  between  London  and  Sydney,  via  Adelaide  and 
Melbourne,  aud  only  one  to  the  Unite<l  States. 

Now,  while  we  can  take  a  steamer  but  once  a  mouth  direct  to  America,  we  have 
one  every  week  to  London.  In  consequence  travelers  who  would  really  much  rather 
go  via  the  Pacific  coasl^cross  the  United  States  are  forced  to  take  the  hot  route  via 
the  Suez  Canal. 

The  United  States  is  losing  a  great  deal  by  this.  Every  one  of  the  steamers  of 
these  four  lines  is  loaded  down  with  600  or  700  passengers  that  might  just  as  well 
come  and  go  via  this  conutry.  If  we  had  a  fortnightly  steamer  to  America  there 
would  be  a  great  change  immediately.  The  fare  from  Sydney  to  London  aud  return 
is  $525  by  either  of  the  four  lines  mentioned.  By  way  of  San  Francisco  it  is  $330, 
from  Sydney  to  London. 

The  overland  American  railroads  ought  to  stand  in  and  reduce  the  rate  to  the  same 
figure  as  by  way  of  Suez.  Then  with  those  fortnightly  steamers  you  would  have 
heavy  trans-Pacific  travel. 

Those  two  things  would  revolutionize  the  passenger  business,  and  in  a  little  while 
you  and  we  would  want  a  steamer  not  ouly  every  two  weeks,  but  every  week. 

The  American  railroads,  instead  of  having  oue  hundred  passengers  a  month,  might 
just  as  well  have  from  aix  to  eight  hundred  or  one  thousand.  As  it  is,  if  you  are  in 
Sydney  and  miss  a  boat,  you  must  wait  a  solid  month  or  go. via  Suez,  and  as  that  can 
be  done  any  week,  passengers  brave  the  hot  weather  and  go  by  that  route  when  they 
really  want  to  come  by  this.  It  is  the  same  way  with  mails.  We  can't  hear  from 
the  Uaited  States  as  wo  would  like. 

There  is  nothing  to  see,  either,  on  the  other  route.  It  is  a  long,  dreary  one,  while 
here  there  are  a  thousand  things,  of  interest. 

IN  TOUCH  WITH  AMERICA. 

This  is  a  field  for  capitalists,  and  many  from  Australia  are  coming  here,  even  as 
things  are,  and  making  investnfeuts.  In  the  last  twenty-five  years  many  Australians 
have  grown  rich.  They  are  now  traveling.  These  steamers  would  do  a  great  deal 
for  both  countries.  The  people  of  Australia  are  in  touch  with  the  United  States, 
We  were  never  so  much  so  as  now.  We  speak  one  language  and  are  of  one  faith.  I 
was  in  a  theater  in  Sydney  on  the  night  of  May  14.  An  American  flag  was  displayed 
there  on  the  stage.     Why,  cheers  went  up  from  four  thousand  tljrouts. 

The  recent  heroic  action  of  the  men  aboard  the  American  ship  Trenton  at  Samoa  in 
cheering  the  escape  of  the  British  war-ship  Calliope  when  they  themselves  were  just 


142  TRADE    AND    TRANSPORTATION    BETWEEN 

going  down   in  the  waves  has  shown  us  what  a  valiant  i>eople  you  have  here,  and, 
believe  me,  it  has  engendered  a  kinder  feeling  than  over  toward  the  United  States. 

Aside  from  this,  we  ought  to  do  business  with  you  and  you  with  ns.  We  want  your 
canned  meats  and  tlour  and  mining  machinery,  and  a  thousand  other  things,  and  you 
want  our  line  merino  wool,  New  Zealand  tin,  kangaroo  leather,  and  so  on.  These 
fortnightly  steamers  would  have  all  the  freight  and  passengers  thoy  could  carry,  and 
I  firmly  believe  it  would  be  an  exceedingly  brief  time  until  wo  would  need,  and  would 
have  a  weekly  steamer.  The  Australian  colonies,  as  you  know,  are  ready  to  give 
£40,000  toward  the  fortnightly  steamers.  The  steamers  want  to  be  larger  and 
faster. 

THE  PACIFIC  CABLE. 

The  Pacific  cable  we  need  verj^  badly  too.  Australian  merchants  want  your  mar- 
ket quotations  every  day,  and  those  they  could  get  by  the  cable.  The  United 
States,  San  Francisco,  Honolulu,  and  the  Australian  ought  to  contribute  jointly  to- 
ward this.  The  United  States  ought  to  give  the  most.  Australia  is  ready  to  do  her 
share. 

Australia  is  growing  very  fast  and  will  be  a  republic  soon.  I  wouldn't  like  to  set 
a  date,  but  it  is  not  far  o^.  Look  how  you  put  your  foot  down  with  Bismarck  on  that 
Sanioan  matter.  There  isn't  another  nation  under  the  sun  that  Bismarck  would  have 
stood  that  from.     He  doesn't  want  to  fight  the  United  States. 

We  in  Australia  have  only  two  countries  we  can  trade  with — England  and  the 
United  States.  We  feel  as  though  the  entire  regiou  here  west  of  Chicago,  or  at  least 
west  of  the  Rocky  Mountains,  and  Australia  ought  to  bcftrading  together.  Both 
countries  would  be  greatly  benefited. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  143 


IV. 

THE  STEAMSHIP  POLICY  OF  ENGLAND. 


Before  the  war,  or  rather  before  the  introduction  of  steam  into  the 
world's  navy,  when  all  ocean  transportation  depended  upon  wind  and 
sail,  no  nation  exceeded  the  United  States  in  skillful  and  daring  enter- 
prises upon  the  sea,  but  since  that  introduction,  and  more  especially 
since  our  civil  war,  we  have  lost  position  both  in  our  naval  power  and 
our  merchant  marine.  But  it  is  not  strange  that,  although  in  1860  the 
United  States  was  the  second  nation  on  the  ocean,  carrying  84  per  cent, 
of  our  own  commerce,  we  are  now  only  carrying  14  per  cent.  Our  people 
are  considered  the  most  practical,  the  most  enterprising,  and  the  most 
intelligent  in  the  world.  They  have  built  up  wealth  at  an  amazing  rate; 
they  have  extended  their  facilities  for  communication  in  every  direction 
until  there  is  not  a  village  or  a  hamlet  in  the  United  States  without  the 
means  of  reaching  the  coasts  of  both  oceans.  The  supremacy  of  the 
Government  has  been  everywhere  established,  and  our  flag  stands  first 
among  those  of  all  nations  everywhere  except  upon  ships.  We  have 
more  surplus  products  to  sell  in  foreign  lands  than  any  other  nation ; 
we  have  more  coal,  iron,  and  timber  for  the  building  of  ships,  and  yet 
we  have  none  and  build  none ;  and  are  paying  $150,000,000  a  year  for 
freight  on  our  carrying  trade,  thus  giving  employment  and  profits  to 
hundreds  of  thousands  of  foreigners,  where  our  own  people  might  be 
engaged. 

We  began  as  a  ship-building  and  a  ship-owning  nation,  and  during 
the  early  life  of  our  Government  were  rapidly  approaching  the  first 
place  when  the  jealousy  of  England  was  aroused,  and  the  war  of  1812 
occurred,  which  was  nothing  more  or  less  than  a  dispute  for  the  pos- 
session of  the  ocean.  There  is  not  an  instance  where  a  nation  ever 
made  such  progress  in  ship  building  as  the  United  States  between  the 
years  1814  and  1840.  In  1837,  thirteen  years  after  the  war,  our  ton- 
nage had  increased  over  300  per  cent.,  while  England's,  in  the  same 
time,  only  increased  about  50  per  cent. 

HOW  THE   BRITISH   SHIPPING  WAS  BUILT   UP. 

For  two  hundred  years  previous  England  had  been  the  mistress  of 
the  ocean  and  her  statesmen  saw  that  something  must  be  done  to  crip- 
gjp  tb^  j9:!{:panding  power  of  the  ypung  Republic,    They  had  tried  war 


144  TRADE    AND    TliANSrOKTATlOxN    BETWEEN 

and  diplomacy  without  success,  aud  a  new  policy  must  be  initiated.  In 
1848,  therefore,  she  repealed  her  navigation  laws  and  corameuced  sub- 
sidizing steam  vessels  to  replace  sail,  and  iron  to  replace  wood.  From 
1848  to  1854  England  spent  $23,390,000  and  brought  her  steam  fleet  up 
to  304,559  tons,  which  was  equal  to  a  subsidj'  of  $93  per  ton. 

The  money  was  expended  by  a  board  of  admiralty,  and  wherever  the 
most  opposition  to  English  shii>ping  existed  there  the  most  money  was 
spent  to  enable  the  British  ship-owners  to  reduce  freights  aud  break 
down  competition.  When  two  of  her  great  steam  ship  companies  could 
not  maintain  competition  with  the  ships  of  other  nations,  although  one 
was  receiving  a  subsidy  of  two  million  dollars  and  the  other  two  million 
and  a  half,  a  commission  was  appointed  by  Parliament  to  examine  the 
situation  aud  report  the  result  of  their  inquiries.  This  commission  drew 
two  new  contracts,  suspending  the  subsidies  and  oflering  a  dividend  of 
8  per  cent,  on  the  English  capital  invested  in  steam-ships.  Other  con- 
tracts were  made,  with  n  fixed  bonus  per  mile  traveled,  so  as  to  enable 
English  lines  to  cut  freight  rates  below  all  competitors. 

Then,  in  1850,  when  Great  Britain  undertook  to  obtain  the  trade  the  ^ 
United  States  is  now  seeking,  the  first  thing  she  did  was  to  make  a 
contract  for  two  lines  of  steam-ships,  one  to  the  West  Indies  and  the 
other  to  Brazil,  the  River  Plate  country,  and  the  west  coast  of  South 
America.  The  first  of  these  companies,  the  Royal  Mail  Steam  Packet 
Company  of  Southampton,  was  originally  paid  a  subsidy  of  $1,350,000 
a  year  and  has  continued  to  receive  one  from  that  day  to  tliis,  although 
the  amounts  have  been  gradually  reduced  as  the  increased  traffic  en- 
abled it  to  become  self-sustaining.  The  other  company  was  the  Pacific 
Steam  Navigation  Company,  established  by  William  Wheelright,  an 
American  citizen,  which  still  receives  a  subsidy  of  $225,000  i)er  year 
for  a  semi-monthly  service. 

ENGLAND'S  RECORD  FOR  FORTY  TEARS. 

From  1854  to  1860  England  spent  over  $36,000,000  in  building  np  a 
steam  merchant  marine.  During  our  war  she  cut  off  many  of  her  sub- 
sidies and  reduced  others,  because  of  the  absence  of  competition,  until 
in  1865  she  paid  less  than  at  any  time  since  1849;  but  in  the  following 
year  she  saw  danger  of  a  renewal  of  competition  from  the  United 
States  and  at  once  began  to  increase  the  compensation  to  her  steamers. 
The  United  States  did  nothing  until  1870,  when  a  small  subsidy  was 
granted  the  Pacific  Mail  Company  by  our  Congress.  Fearing  that  this 
policy  would  become  general,  England  increased  her  subsidies  until 
they  reached  over  $6,000,000  a  year  and  kept  them  at  that  figure  until 
the  United  States  in  1873  abandoned  heri)olicy,  when  England  returned 
to  her  old  system.  In  1854  England  had  300,000  tons  of  ocean  ship- 
I)ing. .  Since  that  time,  she  lias  spent  $225,000,000  in  the  form  of  subsi- 
dies for  the  avowed  purpose  of  extending  lier  commerce,  and  now  has 
over  7,000,000  tons. 

During  the  year  1888,  765  vessels  were  built  and  launched  ia  the  vi^ 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


145 


rious  yards  ol  the  workl.  The  total  tonnage  of  vessels  built  in  Great 
Britain  was  9-57,000,  or  about  85  per  cent,  of  the  whole.  The  United 
States  yards  built  and  launched  73  vessels,  having'  a.  tonnage  of  38,000. 
Forty  years  ago  there  were  built  in  New  York  alone  vessels  whose  ag- 
gregate tonnage  exceeded  that  of  all  Great  Britain.  That  England  has 
l)roftted  by  her  subsidizing  methods  is  evidenced  by  the  fact  that  out 
of  the  world's  33,000  steam  and  sailing  ships,  with  a  tonnage  of  over 
21,000,000,  about  12,000  vessels,  with  a  tonnage  of  over  11,000,000,  be- 
long to  Great  Britain,  without  taking  into  consideration  the  great  num- 
ber of  vessels  that  are  owned  in  that  country,  but  which,  for  various 
reasons,  are  sailed  under  the  flags  of  other  nations. 

BRITISH  MAIL  PAY  TO  BRITISH  SHIPS. 
The  following  table  shows  tlie  amount  of  assistance  given  by  the 
British  Government  to  British  ships  from  1848  to  1888,  in  the  form  of 
mail  pay : 


Tears. 


1848 
1849 
1850 
1851 
1852 
1853 
1854 
1855 
I8!J6 
1857 
1858 
1859 
1860 
1861 
1862 
1803 
1864 
1865 
1866 
1867 
1868 


Mail  pay. 


$3,  250, 
3, 180, 
5,313, 
5, 330, 
5,  510, 
5,  804, 
5,  950, 
5,  741, 
5,  713, 
5,  133, 
4,  079, 
4,  740, 
4,  349, 
4,  703, 
4,  105, 
4,  188, 
4,  503, 

3,  981, 

4,  277, 
4, 079, 
4,  047, 


Years. 


1869 
1870 
1871 
1872 
1873 
1874 
1875 
1876 
1877 
1878 
1879 
1880 
1881 
1882 
1883 
1884 
1885 
1886 
1887 
1888 


Mail  pay. 


690 
761 

741 
5('0 
296 
346 
000 
261 
580 
990 
230 
130 
350 

8;;5 

L'9I 
510 
CJ5 

987 
756 
874 


BRITISH   SUBSIDIES  TO   SPANISH-AMERICAN  LINES. 

The  following  statement  shows  the  annual  subsidies  England  has  paid 
to  acquire  the  trade  she  now  enjoys  with  Central  and  South  America, 
but  the  amounts  given  do  not  include  bounties  to  vessels  in  the  Eoyal 
l!^aval  Eeserve : 


Tears. 

AmouDt  of 
subsidy. 

Tears. 

Amount  of 
subsidy. 

1862 

$1,471,215 
1,471,215 
1,471,215 
1, 157,  070 
1, 134,  570 
1,125,520 
1, 149,  860 
1, 147,  745 
1,  207,  295 
1,238,120 
1,252,840 
1,  266,  760 
1, 243, 485 
1,  245,  090 
698, 260 

1877 

$652,  495 

1863 

1878 

615,420 

1864 

1879 

518,  530 

1865 

1880 

474,  335 

1866 

1 881 

49(i,  775 

1867 

1882 

485,  070 

1868  

1883 

483,  925 

1869 

1884 

482,  800 

1870   

1885       .             

488  765 

1871   

1886                  

525,  727 

1872 

1887         

543,814 

1873 

1888                

550,  446 

1874 

Total 

1875 

24.  664, 312 

1876 

S.  Ex.  54 


146  TRADE    AXI)    TRANSPORTATION    BETWEEN 

NEW   SHIPS   FOR   THE   SOUTH-AMERICAN   TRADE. 

The  grand  new  ships  which  are  now  entering  the  port  of  New  York 
are  not  the  only  ones  England  is  building  for  the  purpose  of  keeping 
her  hold  upon  the  commerce  of  the  world.  The  Pacific  Steam  Naviga- 
tion Company,  which,  under  a  subsidy  from  the  British  Government, 
sends  its  vessels  from  Liverpool  to  Pauama  through  the  Straits  of  Ma- 
gellan, has  recently  launched  four  magnificent  steamers  to  enter  her 
regular  line  and  keep  her  South  American  trade.  Two  of  them,  the 
Oratava  and  the  Auraba,  are  the  largest,  finest,  and  fastest  steamers 
that  have  ever  been  engaged  in  the  South  American  waters.  They  are 
450  feet  long,  49  feet  beam,  37  feet  in  depth,  with  a  capacity  of  0,000 
tons,  and  6,500  horse-power;  triple-expansion  engines,  and  five  double- 
ended  steel  boilers  capable  of  sustaining  a  pressure  of  160  pounds.  The 
average  speed  of  these  vessels,  when  full  ladened,  will  be  16  knots. 
They  are  lighted  with  electric  light,  have  large  refrigerating  machines 
capable  of  cooling  40,000  cubic  feet  of  air  per  hour,  and  are  fitted  out 
with  every  modern  convenience  for  both  passenger  and  freight  traffic. 
The  third  steamer  is  the  China,  of  the  same  description,  460  feet  long, 
48  feet  beam,  and  36  feet  deep,  registering  5,200  tons,  with  engines  of 
5,500  horse-power.  The  fourth  steamer  is  the  Santiago,  350  feet  by  45 
feet  beam  and  31  feet  deep,  with  5,000  tons  capacity  and  4,500  horse- 
power, with  a  guarantied  speed  of  4^  knots. 

All  of  these  vessels  are  built  of  steel,  and  have  four  complete  decks, 
two  of  which  are  steel. 

ENGLAND'S  NAVAL  RESERVE. 

England  has  recently  adopted  the  new  policy  of  establishing  a  Naval 
Eeserve,  which  was  inaugurated  shortly  after  the  complications  that 
arose  with  Eussia  in  1885.  The  British  Admiraltj^  has  acted  on  the 
principle  that  true  economy  will  be  best  promoted  by  securing  the 
construction  of  such  vessels  as  will  be  most  serviceable  for  commerce 
during  peace  and  at  the  same  time  capable  of  cruiser  service  during 
war.  In  1885  the  sum  of  $3,000,000  was  expended  in  retaining  several 
fast  merchant  ships  so  as  to  prevent  them  becoming  available  for  the 
service  of  any  other  power  inimical  to  Great  Britain,  and  under  this 
policy  the  Admiralty  have  since  made  contracts  with  the  Cunard  and 
White  Star  Steam-ship  Lines  for  the  construction  of  a  fleet  of  naval  re- 
servo  cruisers  to  be  used  in  the  transatlantic  traffic  during  peace  and 
available  at  any  time  during  war. 

The  White  Star  Line  undertake  to  hold  at  the  disposition  of  the  Ad- 
miralty at  any  time  during  the  continuance  of  this  agreement  all  its 
vessels,  the  Britannic,  Germanic,  Asiatic,  Celtic,  Teutonic,  and  the  new 
vessel  wliich  has  recently  been  launched,  called  the  Majestic,  which  is 
582  feet  in  length,  52  feet  6  inches  in  width,  30  feet  in  depth,  with  a 
capacity  of  10,000  tons,  and  12,000  horse-power. 


•    THE    UNITED    STATES    AND    LATIN    AMERICA.  147 

A  similar  contract  has  been  made  with  the  Cuuard  Line,  and  under  it 
the  Etruria,  Umbria,  Aurania,  jServia,  Gallia,  and  other  steamers  are  in- 
cluded. 

NAVAL  RESERVE   SUBSIDIES. 

In  consideration  for  the  construction  of  these  steamers  and  holding 
them  ready  at  any  time  for  her  Majesty's  service,  the  companies  are  to 
receive  an  annual  subvention  of  15s.  per  gross  registered  ton  per  annum 
during  the  next  five  years.  This  subvention  will  amount  to  an  average 
of  $35,000  annually  for  each  of  the  vessels  named  above,  and  is  entirely 
distinct  from  their  compensation  for  the  transportation  of  the  mails. 

The  steam-ships  City  of  New  Yorlc,  City  of  Paris,  and  other  modern 
vessels  belonging  to  other  lines  also  receive  similar  subsidies,  the  pay- 
ment to  each  of  the  two  vessels  mentioned  being  $50,000  a  year. 

The  English  Government  also  pays  a  certain  portion  of  the  wages  of 
the  officers  and  crews  of  such  vessels  as  are  enrolled  in  the  list  of  the 
royal  naval  reserve. 

The  steam-ships  of  the  Peninsula  and  Oriental  Steam-ship  Company 
receive  a  subsidy  of  6s.  8d.  per  knot  to  India,  and  3s.  8d.  per  knot  to 
Australia,  which  is  equivalent  to  $1.26  a  nautical  mile.  This  subsidy 
is  in  addition  to  the  mail  pay,  and  is  equivalent  to  over  12  per  cent,  of 
the  capital  of  the  company.  A  few  years  ago  this  same  company  was 
receiving  annually  a  subsidy  of  nearly  $3,000,000,  which  was  more  than 
20  per  cent,  dividend  upon  its  capital. 

BRITISH  MAIL  PAY   IN   1888. 

The  following  statement  shows  the  exact  sums  paid  by  the  British 
post-oflfice  department  for  the  transportation  of  its  foreign  mails.  These 
sums  do  not  include  the  subsidies  above  alluded  to: 

To  Europe : 

Year  1888. 

Dover  and  Calais £13.200 

Dover  and  Ostend 4,500 

Total  for  conveyance  of  mails,  Europe 17,700 

To  America : 

•  United  Kingdom  to  United  States 85,000 

New  York  and  Bermuda 300 

United  Kingdom  and  West  Indies - 90,250 

Belize  and  New  Orleans 1,600 

Newfoundland 4,000 

Liverpool  to  Callao , 11,500 

Liverpool  to  West  Indies  and  Mexico 1, 100 

Southampton  to  Brazil  and  River  Platte 5, 500 

Panama  to  Vali)araiso 3, 500 

202, 750 

Deduct  estimated  amount  of  penalties 50 

Total  for  conveyance  of  mails,  America 202, 700 

•       ===== 


148  TRADE    AND    TKANSPOKTATlUN    151:TWEKN 

To  Africa : 

United  Kinjjdoiu  aud  West  Coast  of  Africa £9,  r)00 

United  Kingdom  and  St.  Helena  and  Ascension 4, 474 

13, 974 
Deduct  estimated  amount  of  penalties 50 


Total  for  loiiveyanco  of  mails,  Africa 13,924 

To  In»lia,  China,  aud  Australia  : 

Between  Brindiei,  Bombay  (via  Suez  Canal),  calling  at  Aden.. 

Between  Brindisi  and   Shanghai  (via  Suez   Caual),  calling  at  Aden,  ^     '^65, 000 

Colombo,  Penang,  Singapore,  and  Hong-Kong 

Between  Brindisi  and  Adelaide  and  between  Naples  and  Adelaide  (via 

Suez  Caual) 170,000 


1,  ?     y65,( 


435,000 
Deduct  estimated  amount  of  penalties 200 

Total  for  conveyance  of  mails,  India,  China,  and  Australia 434,800 

RECAPITULATION. 

Europe 17,700 

America 202,700 

Africa 13,924 

Asia  and  Australia -  434.  HOO 

Total 669,124 

Less  repaid  by  colonies  : 

West  Indies £22,  SW 

East  Indies 63,000 

Australia 75,000 

160, 360 

Net  payment  by  the    Imperial  Government  for  foreign  post-office 

packet  service 508,764 


THE    UNITED    STATES    AND    LATIN    AMEKICA.  149 


V. 

THE  POLICY  OF  CANADA. 


The  Canadian  Government  is  imitating  the  mother  country  in  build 
ing  up  a  merchant  marine,  paying  a  total  of  $730,000  in  the  way  of  sub- 
sidies and  compensation  for  mail  carriage  annually. 

The  British  Government  has  recently  entered  into  a  ten  years'  con- 
tract with  the  Canadian  Pacific  Railway  for  a  steam-ship  service  between 
Vancouver  and  the  Asiatic  ports  of  the  Pacific,  for  which  the  company 
is  to  receive  a  Bubsidy  of  $300,000  a  year  from  the  British  post-oifice 
department,  $125,000  from  the  Canadian  treasury,  and  the  regular  rate 
of  bounty  that  is  paid  vessels  complying  with  the  requirements  of  the 
naval  reserve  law,  which  is  15  shillings  per  ton  gross  measurement  per 
annum  for  five  years.  The  contract  runs  for  ten  years  from  the  first 
departure  from  Hong-Kong;  it  will  be  terminable  on  the  31st  of  Janu- 
ary, 1898,  if  notice  is  given  six  months  beforehand,  and  on  payment  of 
£20,000  by  the  ])ostmaster- general.  The  first  departure  from  Hong- 
Kong  is  not  to  be  fixed  without  consent  of  the  company  earlier  than 
eighteen  months  from  the  date  of  the  agreement.  The  company  under- 
take to  construct  all  vessels  engaged  for  the  service  with  gun  platforms 
and  other  fittings  required  by  the  admiralty  and  to  sell  them  to  the  ad- 
miralty if  required.  The  vessels  are  to  run  17i^  knots  on  the  measured 
mile  and  16  knots  on  sea  trial.  The  company  undertake  to  employ,  as 
far  as  possible,  members  of  the  royal  naval  reserve. 

CONTRACTS  FOR  NEW  STEAMERS. 

T.  G.  Shaughnessey,  assistant  president  of  the  Canadian  Pacific  Rail- 
road, is  now  in  England  making  a  contract  for  the  construction  of  these 
steamers.  They  are  to  be  of  the  same  model  and  design  as  the  new 
North  German  Lloyd  steamers,  will  cost  a  million  dollars  each,  and  are 
to  be  delivered  at  Vancouver  by  the  1st  of  May,  1891. 

In  addition  to  this  line  of  steamers  the  Canadian  Government  pays 
$50,000  a  year  to  maintain  a  fortnightly  service  between  Halifax  and 
Havre. 


150         TRADE  AND  TRANSPORTATION  BETWEEN 

It  also  subsidizes  the  Halifax  and  West  India  Company  at  tlie  rate  of 
$75,000  per  annum. 

The  AUan  Line  receives  a  subsidy  from  Canada  of  $100,000  a  year, 
and  Messrs.  Anderson  &  Co.,  July  17,  1889,  made  a  contract  for  a  new 
steam-shii)  service  between  Montreal  and  Liverpool  in  connection  with 
the  Canadian  Pacific  Railway  and  its  Pacific  steamship  lines  and  in 
competition  with  the  New  York  steamers.  The  Anderson  Company 
l)ropose  to  have  a  weekly  service  by  steamers  of  7,000  tons  register,  13,- 
000  horse-power  engines,  with  a  speed  of  20  knots,  and  expect  to  divert 
much  of  the  New  York  traflBc  iii  that  way.  This  company  will  receive 
a  subsidy  of  £100,000  or  $500,000  sterling  annually  for  ten  years,  pay- 
ment to  be  divided  equally  between  the  British  and  the  colonial  Gov- 
ernments. 

THE  EFFECT  UPON  OUR  COMMERCE. 

The  construction  of  the  Canadian  Pacific  steamers  means  a  great  deal 
more  than  appears  on  the  surface.  They  will  not  only  rob  the  Pacific 
Mail  Company  of  most  of  its  transpacific  passenger  traffic,  but  having 
a  liberal  subsidy,  will  be  enabled  to  cut  under  any  rates  of  freight  it 
may  charge.  Four  hundred  and  twenty-five  thousand  dollars  a  year  is 
equivalent  to  10  j^er  cent,  upon  four  and  a  quarter  million  dollars,  which 
is  just  about  what  the  steamers  will  cost,  so  that  the  share-holders  will 
have  a  dividend  of  this  amount,  even  if  the  vessels  only  pay  their  own 
expenses.  The  transpacific  traffic  has  always  made  San  Francisco  its 
entrepot  and  passed  through  the  United  States  on  the  way  eastward  to 
New  York  and  Europe,  but  it  will  now  be  diverted  over  the  Canadian 
Pacific.  Vancouver  will  enjoy  the  trade  San  Francisco  has  ha<l,  and 
the  business  that  has  been  going  to  New  York  will  go  to  Montreal. 

CANADA  SEEKING  SOUTH  AMERICAN   TRADE. 

The  Canadian  Gazette,  in  its  issue  of  the  21st  of  February  last,  with 
respect  to  the  efforts  of  the  Canadian  Parliament  to  promote  the  trade 
relations  between  Canada  and  South  America,  says : 

Tho  Dominion  parliament  now  has  before  it  the  report  of  Mr.  Simeon  Jones  upon 
trade  relations  between  Canada  and  South  America.  Mr.  Jones  was  deputed  by  the 
Dominion  goverumeut  to  proceed  to  the  Argentine  Republic  and  Uruguay  to  inquire 
into  the  subject,  and  his  report  will  doubtless  stimulate  the  movement  now  on  foot 
in  Canada  for  the  establishment,  under  government  auspices,  of  a  direct  steam-ship 
line.  At  present,  Mr.  Jones  reports,  lumber  is  the  great  staple  article  that  Canada 
could  export  to  these  South  American  countries.  In  1886  the  Argentine  Republic  im- 
ported i¥>  less  than  212,000,000  superficial  feet,  and  of  this  Canada  supplitid  direct  only 
34,000,000,  though  a  large  amount  of  the  spruce  and  pine  shipped  from  the  United 
States  originally  came  from  Canadian  forests;  lienco  Mr.  Jones's  suggestion  that 
Canadian  ]nmb(!r  merchants  should  cultivate  South  American  markets  and  cease  to 
depend  ho  largely  ui>on  the  more  fickle  markets  of  Europe.  There  is  also  every  prob- 
ability that  Canada  could  supply  some  of  the  immense  South  American  demand  for 
coal,  wliicli  is  now  nift,  ulmost  entirely  by  Great  Britain,  for  at  many  points  in  Nova 
Scolia  foal  could  bo  put  on  board  direct  steamers  and  conveyed  to  South  American 
porta  much  more  cheaply  than  can  be  done  from  Great  Britain. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  lf)l 

An  export  trade  might  also  bo  developed  in  cbeese,  agricultnral  implements,  ;uh1 
light  cotton  goods  ;  while  in  return  Canada  would  be  glad  to  receive  sugar,  tobacco, 
and  Huch  raw  material  as  wool.  The  movement  is,  it  seems,  regarded  favorably  by 
the  Argentine  authorities,  and  Mr.  Jours  reports  the  assurance  of  the  foreign  minis- 
ter that  his  Government  would  no  doubt  grant  a  subsidy  to  a  direct  line  between 
Canada  and  Brazil  equal  in  amount  to  that  given  by  the  Dominion  government. 
The  Dominion  government  has  shown  in  the  speech  from  the  throne  at  the  opening 
of  the  Dominion  parliament  that  it  is  prepared  to  do  its  part,  and  we  may  therefore 
hope  for  an  early  and  successful  development  of  Canadian  trade  in  that  direction. 


152 


TRADE    AND    TRAXSl'OiriA'nON    l^.I-TWEEN 


VI. 


THE  POLICY  OF  FRANCE. 


During  the  past  twenty  years  France  has  paid  $90,000,000  as  subsi- 
dies to  her  shipping.  In  1870  her  steam  tonnage  was  154,415  tons ; 
in  1880  it  was  277,759  tons  ;  in  1883  it  rose  to  667,444  tons,  and  in  1889 
it  reached  740,325  tons.  As  a  direct  result  of  this  policy  her  foreign 
commerce  has  increased  $500,000,000  since  1878. 

The  following  statement  shows  the  amount  of  subsidies  paid  annually 
by  France  in  her  steam-ship  lines  in  the  form  of  mail  contracts. 

Mail  contracts  to  French  companies. 


Service. 


Japan,  Cbiiia,  and  India. . 

South  America 

Mediterranean 

Mediterranean 

West  Indies,  Mexico,  etc 

United  States 

Englisb  Channel 

Total 


Miles  per 
year. 


225, 
09, 

14fi, 
:!6, 

138, 

82, 

5, 


88i} 

.'5r)2 

553i 

018J 

400 

6661 

353J 


734,  388J 


Rate  per 
mile. 


Dollarg. 
7.  f)9J 
7.32J 
5.98 
2.08 
5.71 
5.71 
3.73J 


*6.37 


Subsidy  per 
annnm. 


Dollarg. 

1,71 4,  604.  80 

728,  800. 00 

876,  452. 00 

75,  000.  00 

790,6.51.40 

472,  209. 00 

20,  000. 00 


4. 677,  778. 40 


'Average. 

In  addition  to  this  mail  pay  the  Government  pays  a  bounty  upon 
construction  and  navigation,  which  made  a  total  of  $0,792,778  paid 
during  the  year  1888,  to  encourage  its  mercantile  marine.  Of  this  sum 
$3,203,183  was  paid  to  maintain  communication  with  the  several  coun- 
tries of  Central  and  South  America. 

THE  FRENCH  BOUNTY  SYSTEM. 


The  bounties  paid  to  French  ships  were  authorized  by  act  of  January 
29,  1881.  The  bounty  for  construction  is  as  follows:  Wooden  ships 
under  200  tons,  10  francs  per  ton  ;  wooden  ships  over  200  tons,  20  francs 
per  ton  ;  for  mixed  iron  and  wooden  ships,  40  francs  per  ton ;  for  iron 
and  steel  ships,  60  francs  per  ton  ;  for  machinery,  per  100  kilograms,  12 
francs ;  for  boilers,  per  100  kilograms,  8  francs. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  153 

111  18S6  $507,534  was  paid  as  bounty  to  the  Transatlautique  Compauy 
for  the  construction  of  the  four  vessels,  La  Champagne,  La  Bretagne^ 
La  GasGoigne,  and  La  Bourgoyne. 

AMOUNTS  PAID  ANNUALLY  AS  BOUNTIES. 

The  total  amounts  paid  annually  under  this  act  for  the  construction 
of  ships  by  France  are  as  follows : 

1881 1190,160      1887 $712,180 

1882 908,100      1888 872,100 

1883 632,040      1889  (estimated) 927,840 

1884 886,980 

188o 222,820 

1886 901,120 


Total 6,253,400 


In  addition  to  the  construction  bounties  a  navigation  bounty  is  paid 
of  1  franc  and  50  centimes  per  ton  for  every  1,000  miles  traveled  by 
French  ships  during  the  first  year  of  their  construction,  with  a  deduc- 
tion of  5  centimes  jjer  ton  per  1,000  miles  during  each  succeeding  year. 

For  steam-ships  built  upon  plans  approved  by  the  naval  department, 
and  of  a  character  adapted  for  use  by  the  Government  in  time  of  war, 
an  additional  bounty  of  15  per  cent,  upon  the  cost  of  the  vessel  is  paid 
to  the  constructor. 

The  amount  of  bounties  paid  for  navigation  in  1884  was  $1,717,866; 
in  1885,  $1,513,556;  in  1886,  $1,515,669;  in  1888,  $1,232,840. 

The  total  bounty  paid  for  both  construction  and  navigation  was,  in 
1886,  $2,115,211 ;  in  1887,  $2,200,000,  and  in  1888,  $2,115,000. 

These  figures  show  that  France  is  now  paying  more  money  than  any 
nation  on  the  earth  for  the  encouragement  of  her  mercantile  marine, 
and  the  effect  is  plainly  apparent  in  her  prosperity. 

FRENCH  LINES  TO   SOUTH  AMERICA. 

There  are  five  lines  of  steam-ships  connecting  Marseilles,  France, 
with  the  ports  of  Brazil,  Uruguay,  and  the  Argentine  Republic  : 

(1)  Compagnie  Faixsinet. — Steamer  leaves  Marseilles  the  Ist  of  each  month  for 
Montevideo  and  Buenos  Ayres. 

(2)  Compagnie  Nationale. — Leaves  Marseilles  the  25th  of  each  mouth  for  Montevideo 
aud  Buenos  Ayres. 

(3)  Compagnie  Florio-Rubattino  (Italian).  Steamer  every  fortnight  from  Mar- 
seilles via  Genoa  for  Montevideo  and  Buenos  Ayres,  aud  one  each  month  for  Val- 
paraiso and  other  Pacific  ports. 

(4)  Soci6t6  G6u6rale  de  Transports  Maritimes. — Steamer  each  ten  days  from  Mar- 
seilles for  Santos,  Rio  Janeiro,  Montevideo,  aud  Buenos  Ayres. 

(5)  Compagnie  Cyprien-Fabro. — Steamer  each  mouth  from  Marseilles  for  Monte- 
video, Buenos  Ayres,  and  Rosario. 

The  steamers  of  these  lines  are  of  iron,  and  range  from  2,000  to 
2,800  tons  register,  and  from  1,800  to  2,500  horse-power. 

In  addition  to  these  there  is  a  line  between  Havre  and  the  ports  of 
the  east  coast  and  north  coast  of  South  America.    The  best  ships  run- 


154  TRADE    AND    TRANSPORTATTOX    BETWEEN 

iiiu<:i:  to  Kio  de  Janeiro,  Buenos  Ayres  and  Aspinwall  are  those  of  the 
Fnuicli  companies. 

TRADE  BETWEEN  FRANCE  AND  THE  ARGENTINE  REPUBLIC. 

The  trade  between  the  Argentine  Republic  and  France  has  grown 
amazingly  during  the  last  ten  years,  the  increase  being  152  per  cent, 
in  imports  and  153  per  cent,  in  exports.  She  now  holds  the  second 
l)lace,  her  aggregate  trade  with  the  Republic  being  four  million  dollars 
less  than  that  of  Great  Britain.  The  principal  articles  of  export  from 
France  to  the  Argentine  Republic  in  1887  were  wine  $7,000,000 ;  sugar, 
$1,900,000;  dry  goods,  $5,300,000  ;  jewelry  and  fancy  wares,  $2,600,000. 

Besides  the  construction  and  navigation  bounty  which  it  received 
from  the  Government,  the  Messageries  Maritimes  of  France  receives  a, 
special  subsidy  of  $20,000  for  each  round  trip,  semi-monthly,  between 
Bordeaux,  France,  and  Buenos  Ayres. 


THE    UNITED    STATES   AND   LATIN   AMETilCA.  155 


VII. 

THE  POLICY  OF  GERMANY. 


The  German  Government  has  not  paid  subsidies  until  recently,  but 
was  compelled  to  adopt  the  policy  to  maintain  itself  in  competition  with 
England  and  France,  and  she  has  found  it  to  be  eminently  successful. 

In  a  late  number  of  the  German  Trade  Eeview,  published  at  Berlin, 
appears  a  statement  showing  the  results  of  aiding  theGerman  steam-ship 
lines.  It  says  that  "  the  expectations  which  the  friends  of  the  subsi- 
dized steam-ship  lines  had  formed  of  their  success  have  been  more 
largely  realized  in  the  second  year  of  their  existence  than  in  the  first." 
It  refers  particularly  to  the  lines  established  for  the  trade  between 
Germany  and  East  Asian  ports  and  between  Germany  and  the  Austral- 
ian and  intermediate  ports.  The  losses  the  first  year  aggregated  about 
$160,000,  while  in  the  second  year  they  were  reduced  to  $10,000,  and 
this  year  the  lines  are  expected  to  show  a  profit. 

Last  year  (1888)  the  North  German  Lloyd  Company  received  a  sub- 
sidy of  $1,100,000  and  $984,410  was  paid  to  other  companies,  making  a 
total  of  $2,084,410.  In  addition  to  this  $1,047,200  was  paid  for  mail 
transportation,  making  a  grand  total  of  $3,131 ,610  for  the  year. 

GERMAN  LINES  TO   SOUTH  AMERICA. 

There  are  lines  of  German  steamers  from  Hamburg  running  through 
the  Straits  of  Magellan  up  the  west  coast  of  South  America  as  far  as 
Guatemala,  bringing  merchandise  of  all  sorts,  not  only  from  Germany, 
but  other  European  countries,  and  taking  as  return  cargoes  coffee,  dye- 
wood,  and  other  merchandise.  These  vessels  being  subsidized  by  the 
German  Government,  and  being  maintained  upon  a  very  economical 
basis,  are  able  to  cut  under  the  freight  charges  of  the  other -nations. 
The  Germans  do  not  pay  the  officers  and  seamen  of  their  vessels  more 
than  one-third  of  the  wages  paid  those  who  sail  in  American  ships. 

There  are  also  German  lines  to  the  West  Indies,  the  Spanish  maiu^ 
and  the  ejist  coast  of  South  America. 


15G  TRADE    AND    TRANSPORTATIOX    BETWEEN 

A  GERMAN  FLOATING  COMMERCIAL  EXPOSITION. 

Sir  H.  Barron,  Bart,  C.  M.  G.,  Her  Majesty's  minister  at  Stuttgart,  in 
a  dispatch,  dated  the  24th  January  last,  with  reference  to  the  establish- 
ment of  a  German  floating  commercial  museum,  says : 

It  18  announced  in  the  official  Gewerbeblatt  that  in  order  to  open  new  markets  for 
German  manufacturers,  it  has  been  determined  to  create  a  permanent  traveling  float- 
ing "  Musterlager  "  or  display  of  goods.  A  gigantic  steamer  is  to  be  built  for  the  pur- 
]>ose  of  a  floating  exhibition  palace,  and  is  to  visit  at  regular  periods  all  the  great 
harbors  of  the  world,  the  rotation  lasting  two  years. 

It  is  expected  to  attract  purchasers  and  visitors  in  great  numbers,  not  only  by  its 
size  and  novelty,  but  by  concerts  and  refreshments. 

This  vessel  is  to  sail  from  Hamburg  in  the  spring  of  1890,  and  thence  around  the 
world  by  North  and  South  America,  California,  Japan,  China,  Australia,  India,  and 
the  Mediterranean  Sea.  The  dimensions  are  to  be,  length,  172  meters;  breadth, 21 
meters;  depth,  14  meters.  The  capital  required  is  estimated  at  .^),000,000  marks 
(£250,000). 

The  German  Export  Union  takes  a  warm  interest  in  this  undertaking,  and  appeals 
to  all  who  may  desire  to  contribute  capital,  goods,  or  personal  services  to  communi- 
cate with  that  s(»ciety  at  Berlin. 

With  reference  to  the  formation  of  this  floating  museum  the  German  Journal  fiir 
Ex-import,  Industrie,  Handel  uud  Gewerbe  says  that  a  gigantic  steamer  is  to  be  con- 
structed, which,  following  a  regular  itinerary,  will  visit  the  principal  foreign  ports  of 
the  world  in  succession,  and  will  be  accessible  not  only  to  buyers,  but  to  all  persons 
interested.  This  steamer,  by  its  great  size  as  well  as  by  the  novelty  of  its  purpose, 
is  expected  to  attract  large  crowds  at  the  ports  at  which  it  touches.  After  careful  con- 
sideration it  has  been  decided  that  each  voyage  of  the  steamer  should,  to  be  of  real 
use,  last  two  years.  Under  these  conditions  the  steamer  would  bo  able  to  .stay  in 
each  of  the  commercial  centers  which  it  visits  long  enough  to  be  of  ))ractical  service 
to  German  trade,  and  it  could  so  time  its  visits  as  to  arrive  at  favorable  periods  of 
the  year. 

Hamburg  has  been  chosen  as  the  point  of  departure.  Exhibitors  and  others  in- 
terested in  the  enterprise  will  have  an  opportunity  of  seeing  the  steamer  in  that  city 
before  she  starts  on  her  voyage  aronnd  the  world.  The  route  has  been  decided  upon, 
and  the  ports  mentioned  below  will  be  visited  in  the  following  order : 

Copenhagen,  Kronstadt,  Stockholm,  Gothenburg,  London,  Amsterdam,  Rotterdam, 
Antwerp,  New  York,  Philadelphia,  Baltimore,  New  Orlean.s,  Vera  Cruz,  Havana, 
Laquapa,  Bahia,  Rio  do  Janeiro,  Santos,  Montevideo,  Buenos  Ayres,  Valdivia,  Val- 
paraiso, Callao,  Guatemala,  Mauzanillo,  San  Francisco,  Yokohama,  Nagasaki,  Shang- 
hai, Hong-Kong,  Bjiugkok,  Singapore,  Calcutta,  Jiombay,  Madras.  Colombo,  Batavia, 
Port  Adelaide,  Melbourne,  Sydney,  Cape  Town,  Tamatave,  Zanzibar,  Aden,  Suez,  Port 
Said,  Jaffa,  Beyrout,  Smyrna,  Constantinople,  Odessa,  Athens,  Messina,  Palermo, 
Naples,  Civita  Vecchia  (.for  Rome),  Genoa,  Barcelona,  Malaga,  Tangiers,  Lisbon, 
and  back  to  Hamburg.  • 


THE    UNITED    STATES    AND    LATIN    AMERICA.  157 


VIII. 

THE  POLICY  OF  SPAIN. 


Spain  pays  a  bouuty  of  32s.  per  tou  on  vessels  bailt  in  that  country, 
and  admits  duty  free  all  materials  required  in  the  constru<;tion,  repair, 
and  equipment  of  their  vessels. 

The  Spanish  Government  subsidizes  three  divisions  of  steam-ships, 
all  of  which  interfere  greatly  with  the  trade  of  this  country  with  the 
West  Indies  and  South  America.  The  service  in  the  first  division  is  be 
tween  Cadiz,  Spain,  to  Vera  Cruz,  and  is  paid  for  at  the  rate  of  $18,501.13 
per  voyage.  This  first  division  costs  the  Spanish  Government  annually 
$556,939.50. 

The  second  division  includes  what  is  known  as  the  Spanish  Mail  or 
West  Indies,  and  is  subsidized  with  $222,013.15  per  annum. 

The  third  division  embraces  the  steamship  line  plying  between 
Havana,  the  United  States,  and  Quebec,  Canada.  The  subsidy  for  this 
line  annually  is  $243,687.60.  These  steamers  carry  cargoes  to  New  York 
from  Havana,  Cienfuegos,  Matanzas,  Cardenas,  Caibarien,  in  Cuba; 
from  Vera  Cruz  and  Progresso ;  from  Porto  Kico,  St.  Johns,  and  other 
ports ;  from  Hayti,  Port  au  Prince,  and  in  the  Republic  of  Colombia, 
from  Savanilla.  These  Spanish  steamers  run  in  direct  opposition  to 
the  American  steam  ship  lines.  They  take  freight  and  passengers  from 
the  Ward  line  and  the  ''  Eed  D  "  line,  besides  depriving  a  large  num- 
ber of  American  sailing  vessels  trading  regularly  with  the  West  Indies, 
Central  and  South  America  of  the  business  they  have  formerly  done. 

The  Spanish  Government  also  pays  a  bounty  of  $1.83  per  mile  trav- 
eled to  its  West  India  line;  $1.40  to  the  line  to  the  Philippine  Isl- 
ands, and  $1.10  per  mile  to  the  line  to  Buenos  Ayres. 

In  addition  to  the  subsidies  above  noted  Spain  paid  her  steam-ships 
$436,180  last  year  for  the  transportation  of  mails. 

PRINCIPAL  POINTS  OF  CONTRACT  BETWEEN  SPANISH  GOVERNMENT 
AND  THE  COMPANIA  TRANSATLInTICA  ESPANOLA,  PROVIDED  17 
NOVEMBER,   1886. 

Last  part  of  article  4. — Contracts  shall  continue  twenty  years  and 
shall  be  (;onsid('ied  prorogued  for  two  years  before  its  termination, 
'^bivjh  shall  not  be  denounced  by  either  of  the  parties.     Prorogation 


158         TRADE  AND  TRANSPORTATION  BETWEEN 

shall  not  extend  longer  than  two  years,  at  the  end  of  which  the  State 
can  terminate  the  contract  if  it  deems  proper. 

Article  5. — The  State  agrees  to  pay  a  subvention  of  10.18  pesetas 
(say  two  dollars  and  some  cents)  per  mile  on  the  American  line,  7.15 
pesetas  per  mile  on  the  line  of  the  Philippine  Islands,  .73  of  a  peseta 
per  mile  of  service  on  the  connecting  lines.  On  the  opening  of  the 
Panama  Canal  the  Government  should  not  pay  on  the  extended  branch 
from  Colon  to  Guayaquil  more  than  the  canal  dues. 

For  the  service  to  Buenos  Ayres,  5.93  peseutas  per  mile  (say  one  dol- 
lar and  eighteen  cents). 

For  the  service  from  Fernando  Po,  same  compensation. 

From  Marruecos,  the  same. 

The  payment  by  the  State  must  be  paid  in  coin  money  without  any 
discount  whatever.  • 

Article  6. — The  Government  obliges  itself  to  not  make  another  con- 
tract during  the  existence  of  this;  not  to  give  a  subvention  to  any  other 
new  line  of  steam-ships  between  these  points. 

The  company  shall  enjoy  all  the  privileges  and  advantages  given  by 
general  laws  in  favor  of  the  Spanish  merchant  marine. 

Likewise  it  shall  not  be  subjected  to  any  special  impost. 

If  the  Government  desires  to  increase  or  diminish  the  number  of  an- 
nual trips,  this  can  be  done  by  increasing  or  decreasing  the  proportion- 
ate payment. 

Article  7. — If  at  the  end  of  five  years  the  treasury  of  the  company ' 
shows  a  surplus  of  profits,  the  Government  may  demand  that  one  third 
of  this  excess  shall  be  employed  in  extending  new  lines  or  increasing 
the  accommodation  of  the  existing  lines.  To  determine  the  existence  of 
this  excess  the  company  shall  keep  a  special  account  regarding  each 
of  the  vessels,  in  which  they  shall  carefully  state: 

(1)  The  coming  running  expenses  of  the  ship. 

(2)  The  proportional  part  of  the  general  expense  in  the  operation  of 
the  contracted  lines. 

(3)  Six  per  cent,  of  the  value  of  the  vessel  as  insurance  premium. 

(4)  Five  per  cent,  of  the  capital  of  the  vessel  and  20  per  cent,  of  the 
fittings,  as  a  sinking  fund. 

(5)  Five  per  cent,  of  the  value  of  the  inventory  of  the  boat. 

(6)  Five  per  cent,  as  a  reserve  fund. 

(7)  Expenses  of  crew,  coal,  machinery,  etc. 

The  difference  between  the  receipts  and  these  expenses  shall  be  the 
excess. 

Article  8. — When  the  company,  in  the  performance  of  this  contract, 
l)resents  vessels  purchased  abroad,  they  shall  be  relieved  of  the  pay- 
ment of  the  duties  which  belong  to  the  State  on  their  introduction, 
change  of  flag  and  matriculation,  as  also  those  which  belong  on  the  ton- 
nage of  each  vessel  acciording  to  their  mejisnrement ;  butif  any  of  these 
vessels  are  destined  to  other  service  or  transferred  to  another  individ- 
ual, these  said  duties  shall  be  immediately  paid. 


THE    UNITED    S'J'ATES    AND    LATIN    AMERICA.  159 

In  article  50,  all  agents  of  the  company  shall  be  provided  by  the 
Government  with  samples  of  the  products  of  the  Peninsula  (Spain) 
and  her  possessions  in  seas,  with  statements  of  the  prices  of  the  same. 

These  agents  shall  be  obliged  to  insure,  at  the  usual  rates  and  condi- 
tions, all  merchandise  intrusted  to  the  company  for  carriage,  and  trans- 
fer to  the  producers  of  the  goods,  which  seem  most  similar  by  the 
samples,  all  requests  which  may  be  made  to  them  for  such  goods,  and 
to  remit  in  payment  the  value  of  all  fabrics  sold  by  them  at  the  most 
favorable  rates  of  exchange  to  the  producer. 

A  SPANISH  FLOATING  EXPOSITION. 

In  the  spring  of  1889  the  steamship  Conde  de  Wilana  (which  is  in- 
tended for  a  floating  exposition  of  Spanish  industrial  products,  like  that 
which  is  being  arranged  under  the  auspicies  of  the  German  Govern- 
ment, and  will  visit  the  ports  of  Central  and  South  America)  was  in- 
augurated at  Varsalona  by  the  Most  Excellent  and  Most  Illustrious 
Marquis  dfe  Pena-Plata,  Captain-General  of  the  Province  of  Catalonia. 
This  shij)  was  built  for  Count  Vilana,  a  Spanish  grandee  of  the  first 
class,  who  proclaimed  to  all  traders  and  manufacturers  of  Spain  that 
he  would  be  ready  to  receive  on  board  all  sorts  of  manufactured  articles 
for  shipment  to  Latin  America,  such  exhibits  to  be  sold  there  or  to  be 
used  as  sample  for  orders  from  the  merchants  of  the  places  visited. 

This  most  excellent  hidalgo  published  a  rather  fantastical  list  of  ar- 
ticles, which  he  desired  to  carry  as  samples  to  Spanish  America,  and 
l)romised  to  greatly  increase  the  trade  between  Spain  and  her  former 
colonies  across  the  sea.  The  floating  exposition  is  expected  to  reach 
South  America  by  the  first  of  January,  1890,  and  will  remain  there  for 
several  years,  cruising  from  port  to  port. 


160  TRADE    AND    TRANSPORTATION    BETWEEN 


IX. 

THE  POLICY  OF  ITALY. 


An  Italian  law,  passed  on  the  6th  of  December,  1885,  provided  a 
bounty,  for  a  term  of  ten  jears  from  the  date  of  the  passage  of  the  act, 
on  the  construction  of  steam-ships  and  sailing  vessels  of  either  iron  or 
steel  and  on  sailing  vessels  ot  wood.  The  bounty  on  iron  or  steel  vessels 
was  fixed  at  the  rate  of  48s.  per  ton  of  gross  measurement,  and  the  bounty 
on  sailing  vessels  built  of  wood  at  12s.  })er  ton.  The  bounty  upon  ships 
built  for  the  internal  or  coasting  commerce  of  the  country  is  24s.  a  ton. 
An  additional  bounty  for  ten  years  is  paid  upon  the  construction  of 
marine  engines  and  boilers ;  on  engines  Ss.  per  horse-power,  and  on 
boilers  4s.  lOd.  per  quintal  (212  pounds)  in  weight. 

The  above  bounty  is  also  extended  to  repairs  executed  in  Italy,  and 
article  4  of  the  act  provides  that  bounties  on  the  construction  of  all 
steamers,  engines,  and  boilers  shall  be  increased  from  10  to  20  per  cent, 
if  the  steam-ships  are  constructed  so  as  to  be  useful  for  military  pur- 
poses. In  order  to  qualify  for  this  special  bounty  the  steam-ships  must 
be  divided  into  a  sufiQcient  number  of  water-tight  compartments,  to  be 
able  to  float  when  one  compartment  has  been  invaded  by  the  sea,  and 
must  show  not  less  than  14  miles  per  hour,  and  the  engines  must  be  pro- 
tected by  coal-bunkers.  A  sufficient  space  must  also  be  allowed  for  the 
storage  of  coal  for  steaming  4,000  miles. 

BOUNTIES  ON   CONSTRUCTION   AND   REPAIRS. 

The  report  of  the  minister  of  marine  shows  that  during  1886  $22,165 
was  paid  as  bounties  on  construction,  and  $22,935  in  1887.  The  amount 
of  bounty  paid  for  repairs  in  1886  was  $30,175,  and  in  1887,  $36,050.  No 
expenditure,  up  to  the  latest  reports,  has  been  made  on  account  of  the 
special  bounty  payable  to  steam-ships  adapted  to  military  i)ur[)Oses. 
The  total  amount  paid  under  the  law  during  the  last  two  years  has  been 
$111,325. 

On  the  14th  of  July,  1887,  a  law  was  passed  establishing  additional 
bounties  for  the  construction  of  ships.  To  the  bounty  of  48s.  on  iron  and 
steel  ships  allowed  by  the  law  of  1885, 13s.  9^/.  is  added.  To  the  bount^^ 
of  12s.  a  ton  for  wooden  ships  2s.  is  added.  To  the  bounty  for  coasting 
and  internal  vessels  of  24«.,  Gs.  is  added.     For  marine  engines  2s.  per 


THE    UNITED    STATES    AND    LATIN    AMERICA.  161 

liorse-power  is  added,  and  for  boilers  2s.  per  quintal,  and  the  act  of  1887 
allows  £2 per  ton  of  gross  measurement  for  vessels  suitable  for  militaiy 
purposes  ;  (is.  per  horse-power  for  marine  engines  on  such  vessels ;  8.v.  on 
the  construction  or  repair  of  boilers,  per  quintal ;  and  8.s'.  per  quintal  for 
sundry  ax)paratus,  and  subsidiary  engines  used  on  board. 

BOUNTY  ON  IMPORTED  COAL. 

The  law  also  provides  for  a  bounty  of  i)s.  (M.  per  ton  on  coal  imported 
into  the  country  from  foreign  nations,  and  an  additional  bounty  on  navi- 
gation of  12J  cents  United  States  money,  per  ton  of  gross  measure- 
ment, for  every  thousand  miles  made  by  sailing-vessels  or  steamships, 
the  number  of  miles  run  to  be  reckoned  according  to  the  shortest  sea 
routes  between  ports. 

The  number  of  vessels  which  earned  the  bounty  for  importing  coal  in 
1886  was  1G4,  and  in  1887,  118.  The  bounty  earned  in  1886  was  $27- 
635 ;  in  1887,  $33,655. 

The  bounty  earned  by  steam- vessels  for  navigation  in  1886  was  $166,- 
685,  and  in  1887,  $224,780. 

The  bounty  earned  by  sailing-vessels  in  1886  was  $499,100,  and  in 
1887,  $481,445. 

The  total  amount  of  bounty  i^aid  in  1888  by  Italy  to  its  steam-ships 
was  $1,570,938.  The  steamers  in  1888  received  additional  compensa- 
tion amounting  to  $1,732,876  for  the  transportation  of  mails  ;  the  boun- 
ties being  granted  by  the  marine  and  not  by  the  post-office  depart- 
ment. 

ITALIAN  LINES  TO   SOUTH  AMERICA.  ^ 

The  Compagnie  Florio-Rubattino  under  contract  with  the  Italian 
Government  sends  a  steamer  every  fortnight  from  Genoa  to  Monte- 
video and  Buenos  Ayre8,.and  one  each  month  to  Valparaiso,  Chili. 
The  steamers  are  of  iron,  from  2,000  to  2,800  tons  register,  and  from 
1,500  to  2,500  horse-power. 

S.  ^x.  54 11 


162         TRADE  AND  TRANSPORTATION  BETWEEN 


X. 

THE  POLICY  OF  THE  NETHERLANDS. 


Under  tiate  of  August  24,  1889,  the  Hon.  Samuel  E.  Thayer,  United 
States  minister  to  the  Netherlands,  informs  the  Secretary  of  State  that 
he  has  made  inquiries  of  the  minister  of  foreign  affairs  of  the  Nether- 
lands concerning  the  subsidies,  mail  pay,  and  other  forms  of  compensa- 
tion granted  by  the  Government  of  the  Netherlands  to  encourage  steam- 
ship lines,  and  has  received  the  following  reply : 

I  hasten  to  bring  to  your  knowledge  that  the  service  between  the  Netherlands  and 
the  West  Indies  is  carried  on  by  the  "  Royal  Mail  to  the  West  Indies,"  whose  times 
of  sailing  are  given  in  the  above-mentioned  list,  while  the  "  Netherlauds-Anierican 
Steam-ship  Navigation  Company,"  running  between  Amsterdam  or  Rotterdam  and 
New  York,  established  during  the  month  of  December  of  last  year  a  monthly  service 
to  Buenos  Ayres,  connecting  also  with  Brazilian  ports. 

These  two  lines  are  the  only  ones  maintained  between  our  ports  and  those  of  South 
and  Central  America. 

Regarding  transportation  between  the  Netherlands  and  South  and  Central  America 
there  is  no  fixed  tariff  applied  by  our  companies,  the  freight  rates  varying  constantly. 
According  to  information  received  from  the  Nelhorlands- American  Compauy,  the 
fluctuations  for  this  year  have  varied  in  the  cost  of  sugar  from  458.  to  GOs.  per  1,000 
kilograms. 

Other  merchandise  paying  according  to  weight  from  25«.  to  388.  per  1,000  kilogramd. 

Other  merchandise  paying  according  to  the  space  occupied  from  22^8.  to  38^8.  per  40 
English  cubic  feet. 

The  statement  attached  to  the  report  of  the  minister  shows  that  the 
Zealand  Steam-ship  Company  from  Flushing  to  Queensborough,  and 
vice  versa,  receives  a  subsidy  of  $10,000  annually,  for  carrying  the  mails 
of  the  Netherlands.  For  carrying  the  mails  of  other  countries  the 
Government  guaranties  the  sum  of  $104,000  annually,  and  for  carrying 
post  packages  the  company  receives  2  cents  for  every  package  of  3 
kilograms  and  under. 

The  Royal  Mail  of  the  West  Indies  from  Amsterdam  to  Demerara, 
Trinidad,  and  Curasao  receives  a  subsidy  of  $14,400  monthly. 

The  "  Red  D"  Line  of  New  York,  for  carrying  the  mails  between  the 
colony  of  Curasao  and  the  coast  of  South  America  receives  a  subsidy  of 
$480  annually. 

The  Netherlands  Steam-ship  Company,  between  Amsterdam  and  Ba- 
tavia,  receives  a  subsidy  of  $03,400  annually,  and  a-u  ad.ditioiial  sum  for 


THE    UNITED    STATES    AND    LATIN    AMERICA.  163 

mail  post  packages.  Besides  this,  the  Government  guaranties  a  certain 
amount  of  return  freight  every  voyage. 

The  Rotterdam  Lloyd  Steam-ship  Company  receives  a  subsidy  of 
$10,000  annually  for  fortnightly  trips  between  Rotterdam  and  Batavia, 
besides  the  usual  compensation  for  the  transportation  of  mails. 

The  Dutch  West  Indies  Steam-ship  Company  receives  $1.56  for  every 
geographical  mile  sailed  in  its  voyages,  the  subsidy  amounting  to 
from  $132,000  to  $140,000  annually. 

The  Royal  Packet  Company  receives  a  bounty  varying  from  60  cents 
to  $8  per  geographical  mile  sailed  in  its  voyages,  which  amounted  last 
year  to  $269,511.40,  besides  the  ordinary  compensation  for  the  trans- 
portation of  mails. 


1G4         TRADE  AND  TRANSPORTATION  BETWEEN 


XI. 

THE  POLICY  OF  BELGIUM. 


The  Hon.  Edwin  H.  Terrell,  under  date  of  August  19,  1889,  informs 
the  Secretary  of  State  that  the  Belgian  Government  has  recently  entered 
into  a  contract  with  the  German  Australian  Steam-ship  Company  of 
Hamburg,  under  which  that  companj^  engages  that  its  steamers  in  the 
regular  service  between  Hamburg  and  the  ports  of  Australia  shall  stop 
en  route  at  the  port  of  Antwerp,  and  that  for  this  service  the  Belgian 
Government  engages  to  pay  a  subvention  of  1,500  francs  for  each  trip 
going  and  coming. 

The  Belgian  postal  reports  show  that  the  Government  paid  $172,927 
in  1888  for  the  transportation  of  mails,  $48,250  of  which  was  paid  for 
the  service  to  Central  and  South  America.  This,  it  will  be  noticed,  is 
about  the  same  amount  paid  by  the  United  States  for  the  carriage  of 
its  mails  to  Central  and  South  America. 

Belgium  also  has  a  semi-monthly  steam-ship  service  to  Brazil  and  the 
Argentine  Kepublic,  and  next  year  will  increase  the  service  to  thirty- 
six  round  trips  per  year,  instead  of  twenty-four  as  now,  paying  the 
steamers  the  whole  postal  revenue  and  gu  aran tying  $250,000  a  year  for 
six  consecutive  years. 

The  Belgian  Government  admits  free  of  duty  all  materialised  in  the 
construction  of  ships. 

BEPOET  OF  MINISTER  TERRELL. 

Legation  of  the  United  States. 

Brussels,  Septejnher  13,  1889. 
Sir  :  I  have  the  honor  to  forward  this  day,  under  separate  cover,  printed  copies  of 
different  contracts  made  by  the  Belgian  Government  with  steam-ship  companies, 
granting  subsidies,  bounties  and  privileges  for  the  encouragement  of  commerce  as 
follows : 

(1)  Convention  for  the  establishment  of  steam-poatal  service  between  Antwerp  and 
South  America. 

(lo)  Convention  of  June  18,1885,  modifying  and  supplementary  to  the  foregoing 
convention  (of  January  20,  1876). 

(2)  Convention  of  March  10,  1887,  relative  to  service  between  Antwerp  and  New 
York,  made  between  the  Belgian  Government  and  the  Belgian-American  Navigation 
Association  aod  the  International  Navigation  Company  of  Philadelphia, 


THE   UNITED    STATES   AND   LATIN   AMERICA.  165 

C3)  Convention  of  the  Ist  of  March,  188G,  with  the  North  German  Lloyd,  for  the 
establishment  of  regular  communication  between  Eastern  Asia  and  Australia  and  the 
port  of  Antwerp. 

(4)  Convention  of  August  17,  1887,  between  the  Belgian  Government  and  the  For- 
ende  Steam-ship  Company  of  Copenhagen,  establishing  regular  communication  be- 
tween Antwerp  and  ports  in  the  Baltic  and  Black  seas. 

(.'>)  Convention  concluded  June  24,  1889,  with  the  German- Australian  Steam-ship 
Company,  providing  for  regular  communication  between  Antwerp  and  ports  of  Aus- 
tralia. 

Eeferriug  to  your  dispatch  No.  10,  of  July  23, 1889,  asking  for  information  as  to  what 
subsidies,  bounties,  mail-pay,  and  other  compensation  are  given  by  the  Belgian  Gov- 
ernment for  the  encouragement  of  commerce,  I  beg  respectfully  to  make  the  following 
report : 

THE  SOUTH  AMERICAN  SERVICE. 

On  the  24th  of  January,  1876,  the  Belgian  Government  entered  into  a  contract  with 
a  steam-ship  company  of  Liverpool,  operating  under  the  firm  name  of  Lamport  &  Holt, 
and  engaged  in  trade  with  various  ports  of  South  America  (contract  No.  1). 

This  contract  provides  for  regular  steam  service  semi-monthly,  and  after  two  years, 
every  ten  days,  between  Antwerp  and  the  ports  of  Rio  de  Janeiro,  Montevideo,  and 
Buenos  Ayres.  The  steamers  are  to  carry  the  Belgian  flag,  convey  the  mails  and  all 
passengers  and  freight. 

Careful  provisions  are  made  as  to  days  and  hours  of  departure,  other  stopping 
ports,  time  of  voyage,  price  of  freight  and  passenger  tariff,  transport  of  the  mails,  etc. 

In  compensation  for  the  service  the  Government  gives  a  bounty  of  50  francs  for 
every  hour  in  advance  of  time  that  a  ship  reaches  its  destination.  In  addition  the 
Government  grants  to  the  company  all  postal  charges  due  the  Treasury  for  mails 
carried  by  their  steamers,  guarantying  the  company  from  this  source  an  annual  rev- 
enue of  two  hun  dred  and  fifty  thousand  francs.  This  contract  is  to  hold  for  fifteen 
years  from  January  1,  1876. 

The  Government  also  agrees  to  reimburse  the  company  for  all  pilot,  light-house  and 
signal  charges  which  it  may  be  compelled  to  pay  in  navigating  the  Schelde  under 
local  regulations. 

Stringent  provisions  are  incor^wrated,  requiring  bond  of  two  hundred  thousand 
francs  from  the  company  to  insure  the  faithful  execution  of  the  contract,  regulating 
the  quality  of  steamers,  their  machinery,  life-saving  and  fire  service,  food  supply, 
complement  of  seamen,  etc.  The  domicil  of  the  compianyis  to  be  at  Antwerp  during 
the  operation  of  the  contract.  Ample  provisions  are  made  for  fines  and  penalties, 
for  loss  or  damage  to  mails,  delays  in  departure,  or  other  infractions  of  the  contract. 

June  18,  1885,  the  foregoing  convention  was  modified  somewhat  (see  contract  la), 
in  additional  articles,  mainly  increasing  the  number  of  porta  at  which  steamers 
could  stop  en  route. 

THE  NEW  YORK  SERVICE. 

March  10,  1887  (see  contract  No.  2),  the  Belgian  Government  concluded  a  conven- 
tion with  two  steam-ship  companies,  providing  for  the  establishment  of  regular  serv- 
ice for  mails,  passengers  and  merchandise  between  Antwerp  and  New  York.  Weekly 
trips  are  to  be  made  each  way,  and  in  the  main  the  principal  features  of  the  contract 
are  substantially  the  same  as  those  of  the  contract  with  the  Liverpool  company 
hereinbefore  set  forth. 

The  Government  guaranties  to  the  companies  an  annual  revenue  of  380,000  francs 
for  carrying  the  mails,  remitting  to  them  the  postal  charges  due  the  Government  for 
the  same.  The  ships  are  to  be  of  Belgian  nationality,  and  the  contract  is  to  run  five 
years. 


166         TRADE  AND  TRANSPORTATION  BETWEEN 

THE   ASIATIC   SERVICE. 

March  1,  1836,  the  Goyernment  contracted  with  the  North  German  Lloyd  that  the 
compaoy's  steamers  in  their  regular  service  between  Bremerhaven  and  ports  of  East- 
em  Asia  and  between  Bremerhaven  and  Australia,  going  and  returning,  should  stop 
at  Antwerp.  For  this  service  the  Government  pays  to  the  company  the  annual  sub- 
vention of  80,000  francs,  and,  furthermore,  agrees  to  reimburse  the  company  all  pilot, 
light-house  and  signal  charges  which  it  may  be  compelled  to  pay  in  navigating  the 
Schelde. 

This  contract,  although  originally  made  but  for  one  year,  is  still  in  force. 

THE  BALTIC  SERVICE. 

August  17,  1887,  the  Government  arranged  (Contract  No.  4)  with  a  Copenhagen 
Bteam-ship  line  that  its  steamers  should  continue  a  weekly  line  between  Antwerp  and 
the  ports  in  the  Baltic ;  and  that  its  steamers,  plying  between  the  Baltic  and  Batoum, 
should  stop,  going  and  returning,  at  Antwerp.  For  this  the  Government  is  under  no 
pecuniary  obligation  whatever,  but  simply  grants  its  governmental  patronagei 

June  24,  1889,  the  Government  entered  into  contract  with  the  German-Australian 
Steam-ship  Company  for  the  establishment  of  regular  communication  between  Ant- 
werp and  ports  in  Australia. 

I  have  already  furnished  the  Department  with  a  detailed  statement  of  the  provis- 
ions and  conditions  of  this  contract  in  my  dispatch  No.  20,  The  subvention  paid  by 
the  Belgian  Government  for  this  service  is  1,500  francs  for  each  trip,  trips  being  made 
every  twenty-eight  days  from  Antwerp. 

In  addition  to  the  foregoing  special  contracts  entered  into  by  the  Government  for 
the  purpose  of  developing  the  trade  interests  of  Antwerp,  it  grants,  without  any  con- 
tract to  the  "  Kosmos"  Company  of  Hamburg,  all  postal  charges  due  the  Treasury, 
and  all  claims  of  pilotage,  light-houses  and  signals,  in  the  Schelde,  whenever  its 
steamers,  plying  between  Hamburg  and  porta  in  Chili  and  Peru,  transport  regularly 
from  Antwerp,  dispatches,  passengers  and  freight,  at  dates  agreed  upon  in  advance, 
and  after  preliminary  understanding. 

With  the  hope  that  the  foregoing  data  will  sufficiently  answer  and  comply  with 
the  request  of  the  Department,  I  have  the  honor  to  be,  sir,  your  obedient  servant 

Edwin  H.  Terrell. 

Hon.  James  G.  Blaine, 

Secretary  of  State. 

REPORT   OP   CONSUL   STEUART. 

Mr.  John  H.  Steuart,  United  States  consul  at  Antwerp,  writes  the 
Secretary  of  State  as  follows,  under  date  of  August  8,  1889 : 

The  volume  of  trade  between  Antwerp  and  South  America  is  very  heavy  and  the 
connections  are  frequent. 

There  are  two  regular  lines  of  steamers  from  this  port  to  the  River  Plato  and  to 
Brazil — namely,  the  North  German  Lloyd  and  the  Lampert  &,  Holt.  The  former  em- 
ploys about  eleven  steamers  in  the  South  American  trade,  ranging  from  2,300  to  3,000 
tons  each  ;  they  can  take  about  25  first-class  passengers  and  1,000  steerage.  The  lat- 
ter line  employs  about  nine  steamers  and  from  1,.500  to  2,800  tons  each;  they  can  carry 
aboni  20  first-class  passengers,  and  do  not  take  emigrants.  The  Royal  Mail  Line  also 
makes  Antwerp  a  port  of  call  on  the  homeward  voyage,  but  has  no  departures  from 
here. 

In  addition  to  the  above-mentioned  lines  there  are  at  least  three  steamers  leaving 
regularly  each  month  for  the  River  Plate,  and  also  as  many  irregular  steamers  chartered 
as  occasion  offers,  generally  of  light  draught,  taking  freight  for  the  amaller  porta ; 


THE    UNITED    STATES    AND    LATIN   AMERICA.  167 

these  latter  take  heavy  cargoes  and  horses,  but  no  passengers.  There  are  probably  in 
all  nine  or  ten  departures  per  month  from  this  port  for  the  Argentine  Republic. 

The  departures  of  the  regular  steamers  are  as  follows  : 

Lamport  &  Holt,  for  tho  Kiver  Plate,  the  Ist  and  15th  of  each  month. 

North  German  Lloyd  on  the  14th  and  28th  of  each  month. 

For  Brazil,  Lamport  &  Holt  on  the  8th  and  North  German  Lloyd  on  the  '29th of  each 
month.    Both  of  these  lines  can  furnish  other  steamers  if  necessary. 

For  the  west  coast  of  South  America  there  are  two  regular  lines,  namely  the  Ham- 
burg Pacific  and  the  Kosmos,  each  having  semi-monthly  sailings,  and  the  same  lines 
send  each  (from  September  to  April)  a  steamer  once  a  month  to  Central  America. 
The  former  line  employs  about  eleven  steamers,  ranging  up  to  about  3, .500  tons,  and 
the  latter  thirteen  steamers,  ranging  up  to  about  2,500  tons ;  these  steamers  have 
capacity  for  24  first-class,  60  second-class,  and  250  third-class  passengers.  Besides 
the  two  lines  mentioned  there  are  steamers  chartered  and  sent  out  to  ports  on  the 
west  coast  of  South  America  or  Central  America  as  freight  may  oiler. 

There  are  no  regular  lines  of  steamers  from  here  to  the  West  Indies,  but  there  are 
frequently  charters  made  and  vessels  dispatched  to  the  different  ports  of  the  West  In- 
dies as  freight  offers. 

RATES  OF  FREIGHT  TO  SOUTH  AMERICA. 

The  average  rate  of  freight  for  the  Argentine  Republic  and  Brazil  is  from  25«.  to  30a. 
per  ton,  for  heavy  cargo  or  358.  to  458.  for  light  cargo,  with  10  per  cent,  primage.  For 
Chili  and  Peru  from  408.  to  45s.,  and  to  Central  America  508.  per  ton. 

The  only  two  lines  deriving  any  benefit  from  the  Belgian  Government  are  the  Lam- 
pert  &  Holt  and  the  Kosmos.  The  former  company  has  a  contract  by  which  they  re- 
ceive about  £20,000  per  annum,  under  the  condition  that  they  carry  the  mail  free  ; 
this  contract  expires  in  1890,  and  whether  it  will  be  renewed  at  all,  or  under  what 
conditions,  will  then  be  decided. 

The  benefit  of  the  Kosmos  line  consists  in  free  pilotage  and  exemption  from  light 
house  dues,  under  tho  condition  that  the  departures  of  their  vessels  are  fixed  for  reg 
nlar  dates  ;  any  detention  would  deprive  them  of  this  benefit  and  make  them  liable 
to  the  same  charges  as  any  ordinary  vessel.  These  steamers  also  carry  a  mail,  the 
amount  paid,  therefore,  depending  upon  the  quantity  of  matter  carried,  which  is 
generally  very  light. 
I  am,  etc., 

John  H.  Steuart, 

Consul. 


1C8         TRADE  AND  TRANSPORTATION  BETWEEN 


XII. 

OTHER  EUROPEAN  COUNTRIES. 


AUSTRIA-HUNGARY. 

Austria-Hungary  pays  $823.40  per  trip  between  Trieste  and  the  ports 
of  Central  and  South  America,  the  sum  being  a  mileage  rate,  and  the 
total  amounts  to  about  $300,000  a  year. 

The  Government  has  also  granted  an  annual  subsidy  of  120,000  florins 
to  the  steam-ship  line  running  between  Trieste  and  Brazil. 

NORWAY  AND  SWEDEN. 

Norway  and  Sweden  admit  duty  free  all  material  used  in  the  con- 
struction of  vessels. 

The  Storthing  (Parliament)  of  Norway  on  the  17th  of  June,  1889, 
granted  a  subsidy  of  $41,G55per  annum  for  a  mail  steamer  twice  a  week 
between  Bergen,  Norway,  and  Newcastle,  England,  and  a  similar  sum 
for  a  weekly  mail  between  Trondhjem  and  England. 

RUSSIA. 

The  Russian  Government  has  loaned  money  to  its  ship-builders  at  a 
very  low  rate  of  interest  to  encourage  construction,  and  paid  subsidies 
to  the  amount  of  $389,300  in  1888. 

The  Government  of  Russia  on  September  26,  1888,  granted  an  addi- 
tional subsidy  of  $05,000  annually  to  a  line  of  steamers  running  between 
the  Russian  Pacific  ports  and  Corea,  Japan,  and  China. 

PORTUGAL. 

Portugal  pays  an  annual  subsidy  of  $108,000  to  a  steam-ship  line  be- 
tween Lisbon  and  her  African  colonies. 

JAPAN. 

Japan  pays  $500,000  a  year  for  ocean  postage. 

TURKEY. 

The  Ottoman  Government  has  never  paid  bounties  or  subsidies,  but 
timber  for  the  construction  of  vessels  is  furnished  free  of  charge  by  the 
Government,  and  vessels  engaged  in  the  foreign  trade  are  exempt  from 
harbor  dues. 


Jlii;    UNITED    STATES    AND    LATIN    AMERICA.  169 


XIII. 

POLICY  OF  THE  AMERICAN  NATIONS. 


JIEXICO. 


The  Mexican  Government  is  very  enterprisin*;  and  liberal  in  its  en- 
couragement of  steamship  companies.  It  paj^s  $420,000  a  year  to  the 
Spanish  Transatlantique  Line  from  Vera  Cruz  eastward ;  $18,000  a 
year  to  Mr.  Gandencio  de  Llave,  and  has  recently  entered  into  a  con- 
tract with  the  Mexican  International  Steam-ship  Company  to  run  semi- 
monthly steamers  of  not  less  than  800  tons  register  from  San  Diego,  in 
the  United  States,  down  the  Pacific  coast  of  Mexico  as  far  as  San  Jos6 
de  Guatemala,  touching  all  the  intermediate  ports,  which  are  twenty- 
two  in  number.  The  company  is  to  receive  $8,000  per  round  voyage 
for  the  first  five  years  for  semi-monthly  trips,  which  amounts  to  $192,000 
a  year;  $6,000  per  round  voyage  for  the  second  five  years,  or  $144,000 
a  year ;  and  $4,000  per  round  voyage  for  the  next  ten  years,  or  $96,000 
a  year;  which  make  a  total  of  $2,640,000  pledged  to  this  company  for 
the  next  twenty  years.  The  steamers  are  also  paid  $60  per  head  for 
each  colonist  brought  into  Mexico  for  the  first  five  years ;  $50  per  head 
for  each  colonist  brought  in  the  following  five  years,  and  $40  per  head 
for  the  remaining  ten  years.  The  steamers  are  to  enjoy  an  exemption 
from  all  tonnage  and  port  dues  during  the  continuance  of  the  contract ; 
are  to  carry  the  mails  free ;  all  Government  ofiicials,  civil  and  military, 
troops  and  employes,  at  half  the  rates  paid  by  the  public  for  the  same 
service.  These  subsidies  are  to  be  paid  by  the  Mexican  Government 
from  the  import  and  export  duties  collected  from  goods  imported  and 
exported  in  the  steamers  of  this  company. 

The  Government  also  pays  a  subsidy  of  $2,500  per  month,  or  $30,000 
a  year,  to  the  Pacific  Mail  Steam-ship  Company  of  the  United  States  for 
its  service  on  the  west  coast  of  Mexico,  and  $48,000  to  the  New  York 
and  Yucatan  line. 

Mexico  also  pays  European  steam-ship  companies,  under  whatever 
flag  they  sail,  $25  per  capita  upon  all  immigrants  they  bring  into  the 
country.  The  Government  has  also  offered  a  subsidy  of  $18,000  per 
round  trip  once  a  month  for  the  establishment  of  a  line  of  steamers  be- 


170  TRADE    AND    TRANSPORTATION    BETWEEN 

tween  Vera  Cruz  and  the  Argentine  and  Brazilian  ports,  touching  at 
the  West  Indies  en  ronte. 
President  Diaz,  in  liis  hist  message  to  Congress,  speaks  as  follows: 

The  contract  term  for  the  service  of  the  Pacific  mail  steamers  haviug  expired  by 
limitation,  the  concession  was  renewed,  as  was  also  that  of  the  steaiucr  Campechano, 
running  between  Vera  Cruz,  Progrcso,  and  other  iuternicdiato  ports. 

A  contract  has  been  made  with  Mr.  John  C.  Furnian  for  the  establishment  of  a  line 
of  steamers  which  will  make  at  least  monthly  tri)ts  between  New  York  and  Projjreso, 
touching  at  Vera  Crnz.  The  said  contract  iirovides  for  the  gratuitous  carrying  of 
the  correspondence  and  other  small  advantages  without  any  subvention  whatever, 
while  in  exchange  the  line  enjoys  only  the  privileges  and  exemptions  of  ordinary 
mail  steamers. 

The  Alexandre  &,  Sons  line  of  steamers  for  long  years  has  discharged  the  postal 
service  between  Mexico,  the  United  States,  and  Havana,  receiving  therefor  a  lieavy 
subvention.  Arrangements  have  now  been  completed  with  Mr.  John  Ritter,  the 
agent  of  the  company,  to  continue  the  said  service  without  subvention. 

GUATEMALA. 

Guatemala  pays  a  subsidy  of  $24,000  a  year  to  the  Pacific  Mail  Steam- 
ship Company,  and  $10,000  a  year  to  the  Honduras  and  Central  Amer- 
ican Steam-ship  Company.  The  former  sailing  under  the  American  Hag 
touches  her  Pacific  ports,  and  the  latter  sailing  under  the  British  flag 
her  ports  on  the  Caribbean  Sea. 

SAN   SALVADOR. 

San  Salvador,  with  a  population  of  600,000,  pays  an  annual  subsidy  of 
$24,000  to  the  Pacific  Mail  Steam-ship  Company,  about  the  same  amount 
that  company  receives  from  the  United  States. 

BRITISH  HONDURAS. 

British  Honduras  pays  subsidies  to  the  amount  of  $7,500  annually. 

HONDURAS. 

The  Eepublic  of  Honduras  pays  a  subsidy  of  $5,000  a  year  to  the  Pa- 
cific Mail  Steam-ship  Company  for  touching  at  her  Pacific  ports,  and 
$7,500  to  the  Honduras  and  Central  American  Steam-ship  Company, 
which  touches  her  ports  on  the  Caribbean  Sea. 

NICARAGUA. 

Nicaragua  pays  a  subsidy  of  $0,000  a  year  to  the  Pacific  Mail  Steam- 
ship Company,  and  $10,000  a  year  to  the  Honduras  and  Central  Ameri- 
can Line. 

COSTA  RICA. 

This  little  republic  of  250,000  inhabitants  pays  a  subsidy  of  $12,000 
a  year  to  the  Pacific  Mail  Steam-ship  Company,  and  gives  a  reduction 


THE    UNITED    STATES    AND    LATIN    AISIEPJCA.  171 

of  duties  on  all  merchandise  brought  to  her  Caribbean  port  by  the 
Royal  Mail  Steam  Packet  Company  of  England. 

BRAZEL. 

Brazil  pays  about  two  million  dollars  annually  in  subsidies,  and  of 
this  sum  $502,000  goes  to  maintain  communication  with  the  United 
States,  while  our  Government  last  year  paid  only  $11,743  to  encourage 
commerce  with  Brazil. 

Of  this  sum  the  United  States  and  Brazil  Mail  Steam-ship  Company 
received  $100,000;  the  Red  Cross  Line  (English),  $150,000;  the  Booth 
line  (English),  $168,000;  and  Sloman's  line  (English),  $84,000. 

Brazil  is  increasing  her  subsidies  and  has  recently  gi-anted  a  subsidy 
to  Admiral  Baron  de  Jaequay  to  run  two  lines  of  steamers,  one  between 
Santos  and  Hamburg,  via  Lisbon  and  Havre ;  and  one  between  Santos 
and  Genoa,  via  Marseilles,  for  which  the  contractor  is  to  get  $150,000 
a  year  for  twelve  voyages  to  Europe  and  back.  A  decree  imposes  the 
following  conditions  among  others  :  Besides  the  regular  run  of  the  two 
lines  the  contractor  may  use  the  steamers  in  bringing  immigrants  from 
any  port  of  Europe,  and  from  the  Azores,  Madeira,  or  the  Canary  Isl- 
ands to  any  other  Brazilian  port.  For  such  journey  the  contractor 
will  be  paid  a  subvention  of  $12,500,  besides  which  the  passages  of  the 
immigrants  will  be  paid  to  him  either  by  the  general  or  one  of  the  pro- 
vincial governments.  A  clause,  too,  allows  the  baron  to  begin,  from  and 
after  January  1, 1889,  bringing  immigrants  at  the  expense  of  the  state, 
and  at  the  rate  of  $20,000  a  year  for  five  years;  and  until  his  own 
steamers  are  ready  he  may  hire  others  for  this  purpose,  but  his  own 
steamers  must  be  ready  within  thirty  months  from  January  1,  1889. 
The  concession  is  to  last  fifteen  years,  and  the  contractor  enjoys  a  pref- 
erence in  respect  of  any  other  lines  of  transatlantic  navigation  which 
the  Government  may  think  well  to  set  up,  and  he  likewise  enjoys  pref- 
erence in  the  event  of  this  line  being  continued  after  fifteen  years.  On 
his  steamers  arriving  at  any  Brazilian  port  they  are  to  be  unloaded  and 
loaded  in  priority  to  any  other  ship. 

The  Brazilian  Parliament  has  also  voted  the  sum  of  eleven  million 
dollars  to  encourage  the  immigration  of  labor,  the  most  of  which  will 
go  to  the  steam-ship  companies  for  transportation. 

The  Austria-Hungary  Government  pays  an  annual  subsidy  of  120,000 
florins  to  the  steam-ship  line  running  between  Trieste  and  Brazil. 

THE  ARGENTINE  REPUBLIC. 

The  Argentine  Republic  has  recently  made  a  contract  with  the  Hous- 
ton Steam-ship  Company  of  Liverpool  to  furnish  a  semi-monthly  service 
between  Buenos  Ayres  and  New  York^  but  for  some  reason  it  has  not 
been  carried  out.  Under  this  contract  it  guarantied  5  per  cent,  interest 
per  annum  upon  an  investment  of  $7,500,000  in  steam-ships. 


172         TRADE  AND  TRANSPORTATION  BETWEEN 

The  Government  pays  a  bounty  to  steam-ships  for  every  immigrant 
brought  to  its  ports  and  upon  all  dressed  beef  exported  to  Brazil  and 
Europe.  The  sum  of  $509,004  was  disbursed  in  this  manner  for  a  single 
month  recently,  which,  if  the  same  rate  is  maintained  during  the  year, 
will  make  a  yearly  expenditure  of  $0,828,000. 

CHILI. 

The  Republic  of  Chili  pays  an  annual  subsidy  of  $225,000  to  the  South 
American  Steam-ship  Company,  which  performs  a  tri-monthly  service 
between  Valparaiso  and  Panama. 

Until  the  depletion  of  her  treasury  by  the  war  with  Chili  the  Peruvian 
Government  paid  a  subsidy  of  $100,000  a  year  to  the  Pacific  Steam 
Navigation  Company. 

THE  WEST  INDIA  ISLANDS. 

The  various  West  India  Islands  pay  an  aggregate  sudsidy  of  $72,000 
annually  for  maintaining  communication  with  New  York  City  to  the 
Quebec  and  West  India  Steam-ship  Company. 

THE  BAHAMA  ISLANDS. 

The  people  of  the  Bahama  Islands  are  endeavoring  to  secure  steam- 
ship communication  with  the  CTnited  States,  and  the  colonial  secretary 
has  been  advertising  in  the  'New  York  papers  for  proposals  from  parties 
willing  to  run  a  mail,  passenger,  and  freight  steamer  between  Nassau 
and  certain  islands  of  the  Bahama  group,  every  fortnight  for  five  years 
to  come.  In  order  that  there  be  no  mistake  about  it  the  word  "sub- 
sidy" is  plainly  used,  the  language  being:  "tenders  to  state  the  sum 
per  annum  which  the  tenderers  are  willing  to  accept  as  a  Government 
subsidy."  , 

THE   ISLAND   OF   TRINIDAD. 

On  the  first  of  January,  1887,  a  contract  was  entered  into  between 
the  colonial  government  of  Trinidad  and  Tumbull,  Stewart  &  Co.,  of 
Port  of  Spain,  for  the  establishment  of  a  line  of  steamers  between  that 
island  and  the  city  of  New  York,  for  which  a  subsidy  of  five  thousand 
pounds  ($25,000)  a  year  for  a  term  of  seven  years  is  to  be  paid.  The 
steamers  are  required  by  the  contract  to  be  equipped  with  suitable  ac- 
commodations for  passengers,  to  sail  semi-monthly,  and  the  service 
began  the  first  of  April.  All  postal  matter  and  all  postal,  customs, 
and  police  officials  are  to  be  carried  free  of  cost.  A  fine  of  $100  is  to 
be  assessed,  and  deducted  from  the  monthly  installments  of  the  subsidy 
for  each  day's  delay  in  the  arrival  and  departure  of  steamers  under  a 
fortnightly  schedule  adopted  by  the  Government,  and  the  contract  sets 


THE    UNITED    STATES    AND    LATIN    AMERICA.  173 

forth  in  detail  the  rates  of  freight  and  passage  that  may  be  ^jharged 
between  the  ports  of  Trinidad  and  New  York. 

Trinidad  also  pays  $25,000  a  year  to  the  "Trinidad  Line"  to  New 
York,  and  $48,000  to  the  Atlantic  and  West  India  Company. 

THE  ISLAND   OF  BARBADOES. 

The  English  colony  of  Barbadoes,  West  Indies,  pays  an  annual  sub- 
sidy of  £18,000  ($1)0,000)  to  the  iioyal  Mail  Steam  Packet  Company  of 
Southampton,  England,  as  an  inducement  for  that  company  to  make  its 
principal  port  the  rendezvous  of  its  fleet  and  the  distributing  station 
for  its  West  Indian  transportation.  St.  Thomas  formerly  enjoyed  that 
advantage.  The  Royal  Mail  Steam  Packet  Company  has  three  fleets 
of  steamers  engaged  in  the  Central  and  South  American  trade  under  an 
annual  subsidy  of  about  $400,000  from  Great  Britain.  One  fleet  sails 
directly  between  Southampton  and  the  ports  of  Brazil,  Uruguay,  and 
the  Argentine  Republic.  A  second  fleet  sails  between  Southampton  and 
Aspiuwall,  via  Barbadoes,  touching  at  La  Guayra  and  other  ports  of 
the  northern  coast  of  South  America.  The  third  fleet  receives  and  dis- 
charges its  freight  from  and  for  Europe  at  Barbadoes  and  sails  via  the 
Leeward  and  Windward  Islands  to  Havana  and  Vera  Cruz,  the  vessels 
being  constructed  especially  for  the  West  Indian  service. 

JAMAICA. 

During  1888  eleven  American  steamers,  aggregating  4,097  tons, 
entered  the  port  of  New  York  from  Jamaica,  while  245  foreign  vessels, 
of  119,153  tons,  kept  up  communication  between  the  two  ports.  Thir- 
teen American  steamers,  aggregating  7,620  tons,  sailed  from  New  York 
for  Jamaica,  and  204  foreign  steamers  of  80,735  tons. 

Jatnaica  pays  a  subsidy  of  $72,000  a  year  to  the  Atlas  Steam-ship 
Com])auy  for  maintaining  communication  between  Kingston  and  New 
York. 

TOBAGO, 

The  Island  of  Tobago  has  recently  contracted  for  steam-ship  connec- 
.tion  with  New  York,  for  which  it  agrees  to  pay  $25,000  a  year. 

DUTCH   GUIANA. 

Under  a  subsidy  from  the  Government  of  the  Netherlands  the  Royal 
West  India  Mail  Service  has  been  for  some  time  running  a  monthly  line 
of  steamers  from  Amsterdam  to  Paramaribo,  Dutch  Guiana,  from  there 
to  New  York,  and  from  New  York  to  Amsterdam.  This  service  has 
been  supplemented  by  another  line  with  steamers  of  greater  tonnage 
and  speed  and  better  passenger  accommodations,  and  the  intervals  be- 
tween sailing  days  Rave  been  shortened  to  three  weeks.  Besides  touch- 
ing- at  Paramaribo  these  steamers  will  visit  La  Guayra  and  other  ports 


174  TRADE    AND    TRANSPORTATION    BETWEEN 

on  the  Spanish  Main,  and  sail  from  there  to  New  York,  thus  offering 
another  and  serious  competition  both  in  freights  and  passenger  traffic 
to  the  "  Eed  D"  Line  that  sails  under  the  American  flag.  These  Dutch 
steamers  take  no  merchandise  from  the  United  States  to  the  ports  of 
South  America,  but  sail  the  other  way,  bringing  sugar  and  other  pro- 
duce, which  adds  to  our  imports  but  does  not  affect  our  exports.  A 
similar  triangular  system  has  been  going  on  for  years  between  Brazil 
and  Euroi)e.  English  ships  bring  the  raw  products  of  that  empire  to 
New  York,  and  with  the  proceeds  of  their  sale  purchase  manufactured 
merchandise  in  England, 


THE    UNITED    STATES    AND    LATIN    AMERICA.  175 


XIV. 

OUR  STEAMSHIP  LINES  TO  LATIN  AMERICA. 


There  are  but  seven  regular  lines  of  steam-ships  sailing  under  the  flag 
of  the  United  States  between  the  ports  of  this  country  and  those  of 
Latin  America.    These  are  owned  and  operated  by — 

(1)  The  Pacific  Mail  Steam-ship  Company,  sending  vessels  every  ten 
days  between  Xew  York  and  Aspinwall  and  between  San  Francisco  and 
Panama. 

(2)  The  Brazilian  Mail  Steam-ship  Company,  sending  vessels  monthly 
between  New  York  and  the  ports  of  Brazil. 

(3)  The  "Red  D"  Steam-ship  Company  (Boulton,  Bliss  &  Dallett), 
sending  steamers  three  times  a  month  between  New  York  and  the  ports 
of  Venezuela. 

(4)  The  New  York  and  Cuba  Mail  Steam-§hip  Company  (James  E. 
Ward  &  Co.),  maintaining  a  weekly  service  between  New  York  and  the 
ports  of  Cuba,  a  weekly  service  between  New  York  and  the  ports  of 
Mexico,  and  a  semi-monthly  service  between  New  York  and  Nassau 
and  other  West  India  ports. 

(5)  Clyde's  West  India  Line  (William  P.  Clyde  &  Co.),  sending  steam- 
ers once  a  month  to  San  Domingo,  Hayti^  and  other  West  India  Islands. 

(6)  The  Morgan  Steamship  Company,  sending  steamers  once  a  week 
between  New  Orleans  and  Cuba. 

(7)  The  Plant  Steam-ship  Company,  sending  steamers  twice  a  week 
between  Tampa,  Fla.,  and  Havana. 

THE  PLANT  STEAM-SHIP  LINE. 

The  amount  of  money  paid  the  Plant  line  of  steamers  is  not  contained 
in  this  statement  given  below,  for  although  they  ply  between  the  United 
States  and  a  foreign  port  their  service  is  contracted  for  by  the  Post- 
OfiBce  Department  under  the  same  system  that  is  applied  to  the  inland 
steam-ship  service. 

The  Plant  line  service  has  existed  between  Tampa,  Key  West,  and 
Havana  for  the  last  three  years.  It  has  two  fast  steamers  in  commission, 
the  Alasoottej  520  tons,  and  the  Olivette,  1,105  tons.    The  Mascotte  runs 


17G 


TRADE    AM)    TRAXSPOUTATIOX    BETWKEN 


twice  it  week  the  whole  year  rouud.  The  Olivet  is  only  used  to  accom- 
modate the  heavy  wiuter  travel  to  the  West  Indies.  Durinp;  the  sununer 
mouths  the  Olivet  sails  between  Boston  and  Bar  Harbor.  The  steamers 
leave  Tami)a  upon  the  arrival  of  the  through  trains  from  New  York 
and  arrive  in  Ilavaiia  the  following  morning.  The  amount  paid  this 
company  for  carrying  the  mails  three  times  a  week  during  the  winter 
months  and  twice  a  week  during  the  summer  months  is  $58,500  a  year,  ■ 
or  $10,000  more  than  is  paid  to  all  the  other  steam -ship  lines  between 
the  United  States,  the  West  Indies,  and  Central  and  South  America. 
If  similar  compensation  were  guaranteed  other  lines  we  would  have 
regular  weekly  communication  between  the  ports  of  the  United  States 
and  all  the  South  American  countries. 

THE  MORGAN  COMPANY. 

The  Morgan  line  sends  steamers  between  New  York  and  New  Or- 
leans every  ten  days,  and  between  New  Orleans,  Havana,  and  the 
Mexican  ports.  This  line  has  seven  steamers,  the  Morgan  City,  1,291 
tons  ;  the  Arlmnsas,  1,157  tons  ;  the  Algiers,  1,287  tons  ;  the  Sutehin- 
sow,  910  tons;  the  (7/ia?»ie;(^  1,931  tons ;  the  Excelsior,  2,4,07  tons;  and 
the  New  York,  1,259  tons.  For  the  fiscal  year  ending  June  30,  1888, 
the  line  carried  334  pounds  United  States  letters  and  23I24  pounds 
prints,  for  which  the  compensation  was  $703.58. 

There  are  several  other  comi)anies  sending  vessels  more  or  less  reg- 
ularly between  the  ports  of  the  United  States  and  those  of  Central  and 
South  America,  all  of  which  are  embraced  in  the  following  list,  taken 
from  the  report  of  the  Postmaster-General  for  1888.  The  statement 
also  shows  the  amount  of  money  each  company  received  daring  that 
year  for  the  transportation  of  the  United  States  mail : 


Name  of  steam-sbip  line. 


Destination. 


Compen 
sat  ion. 


Pacific  Mail  (from  New  Tort) 

Pacific  Mail  (from  San  Francisco). 

New  Yorlc  and  Cuba  Mail 

Steamer  Ilaytien  Republic 

Lord  &  Austin 

Chde 

l{od"D" 

AVincbester  &,Co 

New  York,  Havana  and  Mexican.. 

Kityal  Mail 

Morj;an 

Do 

1)0 

Otcri's  Pioneer 

United  States  and  Brazil  Mail 

Now  Orleans  and  Colombia 

Pacific  Mail 


United  States  of  Colombia 

do 

Cuba 

nayti  and  Turk's  Isjland 

do 

Ilayti  and  San  Domingo 

Venezuela  and  Cura9oa 

Pi)rto  llico - 

Mexico 

Ceil  tral  America 

Cuba 

Mexico 

Central  America 

Honduras  and  Ouatoraala 

Brazil  and  Windward  Islands... 

United  States  of  Colombia 

Inward  service 


Total , 


$20, 153 

2,S35 

195 

:{07 

175 

1,  124 

C,  (184 

49 

664 

3,893 

156 

64 

482 

360 

11,  733 

14 

76 

48, 072 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


177 


FOREIGN  LINES. 

There  are  also  a  large  number  of  steam-sliip  lines  owned  by  foreign 
conii)anles  and  operated  under  the  flags  of  foreign  nations,  funiisliiug 
transi)ortation  between  the  ports  of  the  United  States  and  those  of 
Central  and  South  America. 

THE  ATLAS  STEAM- SHIP   COMPANY. 


One  of  the  most  successful  foreign  lines,  as  well  as  the  most  danger- 
ous competitor  to  American  steam-ships,  is  the  Atlas  Company,  owned 
by  English  stockholders  and  sailing  under  the  British  flag. 

The  Athis  Company  has  a  fleet  of  eleven  steamers  in  service  at  pres- 
ent, with  one  on  the  stocks  which  will  be  launched  shortly,  and  another 
at  the  bottom  of  the  North  Eiver,  where  it  was  sunk  by  collision  some 
months  ago.  Arrangements  are  being  made  to  raise  it,  and  it  will 
probably  be  in  the  ship-yards  for  repairs  before  this  report  is  printed. 
The  following  is  a  list  of  the  steamers  engaged  at  i^resent  in  the  service 
of  the  Atlas  Company : 


steamers. 

Tons. 

steamers. 

Tons. 

2,700 
2,200 
2, 200 
2,  200 
2,200 
2,000 
500 

2,000 
1  800 

Atlas    .. 

1  600 

Alvo  

1  500 

1  100 

600 

These  vessels  are  all  of  iron  and  steel,  were  built  by  the  most  cele- 
brated contractors  in  Scotland,  and  each  fit  for  the  passenger  trade. 
By  reason  of  their  ability  to  maintain  their  steamers  cheaper  than  the 
American  steamer  can  be  maintained  and  the  subsidy  received  from  the 
colonial  government  of  Jamaica,  the  Atlas  Line  is  able  to  carry  freight- 
at  much  less  than  is  charged  by  the  competing  American  lines,  and  has 
been  very  prosperous.  It  is  a  matter  of  common  report  that  the  profits 
on  its  last  year's  business  will  more  than  pay  the  cost  of  the  new  steamer 
that  is  now  building  and  the  repairs  of  that  which  was  sunk  last  spring. 

The  service  of  the  Atlas  Company  covers  the  West  Indies  and  the 
Spanish  Miiin.  The  steamers  Sail  from  New  York  to  Hayti,  Jamaica, 
and  other  West  India  islands,  and  all  the  principal  ports  on  the  north 
coast  of  South  America,  and  carry  the  United  States  mails.  During 
the  year  1888  the  Atlas  Company  received  $2,172  compensation  from 
the  United  States  Government  for  the  transportation  of  the  mails. 
iS.  Ex.  51 12 


178 


TRADE    AND    TRANSPORTATION    P.ETWEEN 
THE   BED  CROSS  LINE. 


The  Red  Cross  Steamship  Company,  which  is  owned  by  English  cap- 
ital, runs  between  New  York  City  via  Baltimore  and  the  ports  of  Bra- 
zil. Its  steamers  are  of  first-class  English  construction,  of  two  thousand 
tons  or  more.  It  receives  a  subsidy  of  $150,000  a  year  from  the  Bra- 
zilian Government,  and  received  $189  from  the  (Juited  States  last  year 
for  carrying  the  mails  to  Brazil. 

THE  BOOTH   STEAM  SHIP   COMPANY. 

The  Booth  Steam-ship  Company,  which  is  owned  by  English  capital 
and  sails  under  the  British  flag,  sends  one  steamer  monthly  between 
New  York  and  the  ports  of  Brazil,  and  bi-monthly  steamers  to  the  ports 
of  the  Amazon,  for  which  it  receiv^es  $7,000  per  voyage  from  the  Bra- 
zilian Government,  or  a  total  of  $168,000  a  year. 

ROYAL  DUTCH  WEST  INDIA  COMPANY. 

This  company,  which  is  owned  by  Holland  capitalists  and  sails  un- 
der the  flag  of  the  Netherlands,  is  engaged  in  what  is  known  as  the 
triangular  service,  sailing  from  Amsterdam  to  the  ports  of  the  West 
Indies,  Venezuela  and  Colombia,  and  then  returns  to  Amsterdam  by 
way  of  New  York.  It  receives  a  subsidy  from  the  Government  of  the 
Netherlands  of  $14,400  monthly  for  the  transportation  of  the  mails  to 
Demarara,  and  also  a  bounty  of  $1.56  for  every  geographical  mile  sailed 
in  its  voyages,  which  amounts  annually  from  $132,000  to  $140,000.  Its 
aggregate  subsidies  average  $150,000  a  year.  This  company  has  four 
fine  steamers,  as  follows : 


steamer. 

Tons. 

steamer. 

Tons. 

Prins  Wiliom  I 

1,  250 
1,500 

1  250 

1,250 

By  reason  of  its  subsidy  this  company  is  enabled  to  cut  under  the 
rates  charged  by  the  Red  D  Line  to  Venezuela,  and  is  its  most  danger- 
ous competitor.  It  carries  no  freight  from  New  York  to  the  South 
American  ports  direct,  and  therefore  contributes  little  or  nothing  to 
our  exports,  but  comes  here  loaded  with  the  sugar  of  Dutch  Guiana  and 
other  products  of  the  South  American  countries,  which  it  leaves  at 
New  York,  and  therefore  adds  largely  to  our  imports  from  those  coun- 
tries. It  also  carries  a  good  deal  of  freight  to  the  South  American 
countries  by  way  of  Amsterdam,  and  is  able  to  give  a  rate  from  New 
York  across  the  Atlantic  and  then  to  South  America  cheaper  than 
a  direct  American  line  can  aftbrd  to  offer.  It  is  said  that  our  imports 
from  South  America  by  this  line  last  year  were  $14,442,000  and  oyu: 
exports  $11,497,000. 


THE  UNITED  STATES  AND  LATIN  AMERICA.        179 
THE  HONDURAS  AND  CENTRAL  AMERICAN  COMPANY. 

The  Honduras  tiud  Ceutral  American  Company,  which  sails  under 
the  British  flat?,  sends  two  steamers  a  month  from  New  York  by  way  of 
Jamaica  to  the  Central  American  ports  on  the  Caribbean  Sea.  It  has 
two  tine  steamers,  the  Auguan^  1,213  tons,  and  the  Hondo,  1,200  tons, 
built  of  steel  in  1887,  with  fine  passenger  accommodations.  The  time 
of  i)assage  from  New  York  to  Jamaica  is  five  and  one-half  days,  and 
from  Balize,  Honduras,  to  New  York,  six  days.  A  new  steamer  of 
1,800  tons  is  being  built  for  this  line,  and  will  be  put  in  commission 
during  the  coming  winter. 

This  company  receives  a  subsidy  of  $10,000  a  year  from  Guatemala, 
$10,000  a  year  from  Nicaragua,  $7,500  a  year  from  Spanish  Honduras, 
and  $5,000  a  year  from  British  Honduras,  making  a  total  of  $32,500  a 
year,  and  comes  in  direct  competition  with  the  Pacific  Mail  Company 
and  the  New  York  and  Cuba  Mail  Steamshij)  Company,  which  sail 
under  the -A  merican  flag.  It  receives  in  subsidies  from  the  Central 
American  governments,  as  will  be  seen,  $10,000  more  per  year  than  is 
paid  by  the  United  States  to  the  competing  lines  which  sail  under 
its  flag. 

SLOMAN'S  NEW  YORK  AND   BRAZIL  LINE. 

The  Eobert  N.  Sloman  New  York  and  Brazil  Line  sends  a  steamer 
every  month  between  New  York  and  Baltimore  and  the  ports  of  Brazil. 
It  has  four  steamers  of  about  1,500  tons  burden,  which  carry  freight 
alone,  and  take  neither  passengers  nor  mails.  It  receives  the  sum  of 
$7,000  per  voyage  from  the  Brazilian  Government,  or  a  total  of  $84,000 
per  year. 

THE   SPANISH  WEST   INDIA  LINE. 

The  Comj)aiiia  Transatl^ntica  Espanola  receives  a  subsidy  of  $430,180 
from  the  Government  of  Spain,  and  $420,000  annually  from  the  Gov- 
ernment of  Mexico,  or  a  total  subsidy  of  $856,180,  or  eighteen  times 
more  than  is  paid  by  the  United  States  to  al,l  the  foreign  steamers  that 
sail  under  its  flag. 

Three  steamers  a  mouth  leave  New  York  for  Havana  and  Vera  Cruz, 
touching  at  the  principal  ports  of  the  West  Indies  and  the  Spanish 
Main.  It  has  a  large  number  of  steamers  of  greater  tonnage  than  any 
sailing  under  the  United  States  flag. 

NEW  YORK  AND  PORTO   RICO   STEAM-SHIP  LINE. 

This  company  sends  a  steamer  every  three  weeks  between  New  York 
and  Porto  Eico. 

QUEBEC  STEAM- SHIP  COMPANY. 

This  company  operates  a  line  of  steamers  between  New  York,  Ber- 
muda, and  the  West  India  Islands,  sailing  once  a  week,  and  receives  a 
subsidy  aggregating  $2,000  a  voyage,  or   $72,000  a  year,  from   the 


180         TRADE  AND  TRANSPORTATION  BETWEEN 

various  West  India  Islauds  at  whose  ports  it  touches.     It  has  five 
steamers,  fitted  up  for  passenger  travel,  uamely  : 


steamer. 


The  Orinoco  . . 

Trinidad 

Flamborough . 


Tons. 


1.200 

1,500 

750 


Steamer. 


Bermuda 
Muriel 


Tons. 


1,000 
1,000 


Last  year  this  company  received  $1  ,CG5  for  carrying  the  United  States 
mails. 

NEW  YORK  AND  JAMAICA  LINE. 

This  line  sends  steamers  irregularly,  under  the  English  flag,  between 
New  York  and  the  ports  of  Jamaica.  As  a  rule  they  go  down  in  bal- 
last and  return  laden  with  sugar  and  fruits. 

TRINIDAD  LINE. 

This  company,  which  sails  under  the  English  flag,  owns  two  steamers, 
and  charters  a  third,  which  sail  every  alternate  Thursday  from  New 
York  to  Port  of  Spain,  Trinidad.  It  receives  a  subsidy  of  $25,000  a 
year  from  the  colonial  government  of  Trinidad,  or  more  than  half  as 
much  as  is  paid  by  the  Government  of  the  United  States  to  all 
steamers  that  sail  under  its  flag. 

THE   TAURUS  LINE. 

This  line  belongs  to  an  English  company,  and  sends  a  steamer 
monthly',  or  oftener  if  necessary,  to  the  ports  of  Porto  Rico,  and  carries 
freight  only. 

THE  people's  LINE  FOR  HAYTI. 

This  is  an  English  company  which  sends  a  steamer  once  a  month,  or 
oftener  if  the  freight  demand  warrants  it,  between  New  York  and  the 
ports  of  Ilayti.    It  carries  no  passengers  or  mails. 

NEW  YORK  AND  YUCATAN  STEAM-SHIP  COMPANY. 

This  company  operates  under  the  English  flag,  and  has  two  steamers, 
the  East  Gate^  1,000  tons,  and  the  Tangier,  1,260  tons,  which  sail  semi- 
monthly between  New  York  and  the  ports  of  Mexico,  and  receives  a 
subsidy  of  $2,000  per  trip  from  the  Mexican  Government. 

THE  ANCHOR  LINE. 

The  Anchor  Line,  which  is  owned  by  an  English  company,  has  a 
fortnightly  service  between  New  York  and  Jamaica  with  two  steamers 
of  about  1,000  tons,  but  it  takes  no  freight  or  mails  and  receives  no 
subsidy. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  181 

THE  ATLANTIC   AND   WEST  INDIA  LINE. 

Thislineisownedby  an  English  company,  and  sends  steamers  monthly 
between  New  York  and  Trinidad,  slopping  at  other  ports  of  the  West 
Indies,  and  receives  a  subsidy  of  $48,000  from  the  colonial  government 
of  Trinidad. 

THE  WINCHESTER. 

Messrs.  J.  W.  Winchester  &  Company,  English  capitalists,  send  a 
steamer  under  the  British  flag  every  two  weeks  between  New  York  and 
the  West  Indies,  and  a  steamer  once  a  month  from  New  York  to  Brazil. 
Its  steamers  are  of  1,200  tons  burden,  but  take  no  passengers  or  mails. 

THE   ERN  LINE. 

The  Ern  Line  has  a  fleet  of  three  steamers,  owned  by  English  capi- 
talists, which  ply  between  Philadelphia  and  St.  Jago ;  they  carry  no 
passengers  or  mails,  but  usually  go  out  loaded  in  ballast  and  come  back 
loaded  with  iron  ore. 

THE  NEW  ORLEANS  AND  BALIZE  ROYAL  MAIL. 

This  is  an  English  company  which  operates  a  weekly  service  between 
New  Orleans  and  the  northern  ports  of  Central  America,  and  receives 
a  small  subsidy  from  the  Government  of  British  Honduras.  It  has 
three  steamers — the  Breakwater^  City  of  Dallas^  and  the  Wanderer — 
with  a  total  tonnage  of  2,500  tons,  and  last  year  received  $3,393  from 
the  United  States  for  carrying  the  mails. 

OTERl'S  PIONEER  LINE. 

This  company,  which  has  one  American  vessel  of  C95  tons  and  three 
steamers  wliich  sail  under  the  English  flag,  operates  a  semi-monthly 
service  between  New  Orleans  and  the  northern  ports  of  Central  America. 
It  carries  no  passengers  or  mails. 

NEW  ORLEANS  AND   COLUMBIA  LINE. 

This  line  belongs  to  an  English  company  which  sends  steamers  twice 
a  month  during  the  freight  season  between  Aspinwall  and  other  ports 
of  Colombia  and  New  Orleans. 

THE  TRAMP  NUISANCE. 

The  most  serious  competition  which  steamers  bearing  the  flag  of  the 
United  States  are  compelled  to  contend  wiUi  comes  from  so-called  tramp 
vessels — the  guerillas  of  the  sea.  They  are  generally  worn-out  hulks, 
discarded  by  the  companies  who  owned  them,  and  sent  out  as  a  matter 
of  speculation  to  pick  up  what  freights  they  can  from  port  to  port,  like 
an  old  and  worthless  horse  turned  out  of  the  regular  pasture  to  find  his 
living  by  the  roadside. 


182 


TRADE   AND   TEANSPORTATION    BETWEEN 


These  tramps  leave  their  native  countries,  principally  England,  Ger- 
many, and  Spain,  a  few  months  before  their  annual  certificates  of  in- 
spection exiiire.  They  can  and  do  remain  away  for  years,  and  as  long 
as  they  do  so  there  is  no  power  to  compel  them  to  undergo  survey  and 
inspection.  Some  of  these  tramps  visit  the  colonial  ports  of  the  coun- 
trj^  under  whose  flag  they  sail,  but  this  is  a  very  small  x^ortion  of  their 
business.  Their  principal  business  is  done  between  the  United  States 
and  foreign  ports,  and  as  the  cost  of  maintaining  them  is  merely  nom- 
inal, they  are  enabled  to  cut  under  the  regular  lines  of  steamers  to  any 
extent  that  may  be  necessary  to  get  the  trade.  Many  of  them  unite  a 
commercial  business  with  the  transportation  business,  and  when  they 
can  not  obtain  cargoes  in  the  regular  way  they  purchase  goods,  or  take 
them  upon  consignment,  to  be  sold  at  the  ports  they  visit.  The  Amer- 
ican steam-ship  lines  with  which  they  compete  sell  transportation  pure 
and  simple,  and  are  not  allowed  by  law  to  discriminate  in  rates  of 
freight. 

TABLE  OF  DISTANCES. 

In  connection  with  the  question  of  establishing  additional  lines  of 
steamers  between  th  e  United  States  and  Central  and  South  America, 
the  following  table  of  distances  in  statute  miles,  by  steamer  routes,  from 
New  York  and  from  New  Orleans,  respectively,  to  the  ports  named, 
will  prove  of  interest : 

[Famished  by  the  Hydrographic  OflBce  of  the  United  States  Navy  Department] 


From  New  York  to — 


Havana.  Cuha 

Maracaibo,  Venezuela 

Georgftown,  British  Guiana 

Paramaribo,  Dutch  Guiana 

Para,  Brazil 

Pemambuco,  Brazil 

Bahia,  Brazil 

Kio  Janeiro,  Brazil 

Montuviileo,  Uruguay 

Burnos  Ayres,  Argentine  Republic 

Valparaiso,  Chili* 

Callao  (Lima),  Peru* 

Carthagena,  tinited  States  of  Colombia 


Miles. 


1,451 
2,  :!03 

2,  COS 
2,741 

3,  455 
4,319 
4,733 
5,  528 
0,  690 
0,  794 
9,789 

11,274 
2,  337 


From  New  Orleans  to — 


Havana,  Cuba 

Maracaibo,  Venezuela 

Georgetown,  British  Guiana 

Paramaribo,  Dutch  G  uiana 

Para,  Brazil 

Pemambuco,  Brazil 

Bahia,  Brazil 

Rio  Janeiro,  Brazil 

Ikloiitc video,  Uruguay 

Bu(>ii()s  Ayres,  Argentine  Republic 

Val]i;u:ii.s(),  Chili* 

Callao  (Lima),  Pern* 

Carthagena,  United  States  of  Colombia 


Miles. 


714 
2,048 
2,879 
3,  052 
3,  915 
5.  009 
5,  412 
6,218 
7,393 
7,508 
10, 438 
11, 988 
1,612 


'  Through  Straights  to  Gulf  of  Penas. 


THI-:    UNITED    STATES    AND    LATIN    AMERICA.  183 


XV. 

THE  PACIFIC  MAIL  STEAMSHIP  COMPANY. 


New  York,  September  18,  1889. 
Sir  :  Your  favor  of  July  26, 1889,  has  been  referred  to  me,  and  in  an- 
swer to  the  questions  submitted  therein  I  beg  leave  to  reply  as  fol- 
lows :  • 

ITS  BEGINNING  AND  EXTENSION. 

The  Pacific  Mail  Steam-ship  Company  is  a  corporation  chartered  by 
a  special  act  of  the  legislature  of  the  State  of  New  York,  passed  in 
1848,  the  charter  having  been  extended  by  supplemental  acts  passed  in 
1868  and  1888.  At  the  time  of  the  commencement  of  business  by  the 
company  there  was  a  large  and  growing  passenger  traffic  between  the 
port  of  New  York  and  California,  culminating  in  1849,  during  the  time 
of  the  gold  fever,  in  a  business  which  was  devoted  almost  exclusively 
to  the  carrying  of  passengers,  there  being  little  or  no  freight  to  be  for- 
warded between  the  port  of  New  York  and  what  subsequently  became 
San  Francisco. 

The  nature  of  the  company's  business  was  determined  by  the  fact 
that  there  was  little  or  no  commerce  between  the  port  of  New  York  and 
the  Central  American  and  Mexican  States.  The  ships  of  the  company 
which  were  in  use  at  the  commencement  of  its  business  were,  there- 
fore, fitted  up  and  run  to  meet  the  rush  of  people  from  the  Eastern 
States  to  the  gold  fields  of  California.  Since  that  time  there  has  been 
a  great  change  in  the  nature  of  the  traffic  carried  on  by  this  com- 
pany, and  it  has  extended  its  routes  by  taking  in  not  only  a  coast  trade 
on  the  western  coast  of  Central  America  and  Mexico,  but  also  a  trans- 
Pacific  trade  to  Japan  and  China.  This  extension  of  its  business,  as 
well  as  the  large  increase  of  the  volume  of  merchandise  imported  from 
and  exported  to  the  ports  above  mentioned,  has  called  for  an  increase 
in  the  number  as  well  as  in  the  tonnage  of  the  vessels  of  this  com- 
pany. 

THE   company's  VESSELS. 

• 

The  company  is  now  the  owner  of  seventeen  vessels,  as  follows : 
The  Citu  of  Peking,  a  freight  and  passenger  screw-steamer,  of  6,079 
tons,  built  by  John  Roach  at  his  yards,  and  costing  $1,437,397.04. 


184  TRADE    AND    TRANSPORTATION    BETWEEN 

The  City  of  Rio  de  Janeiro,  a  freight  and  passenger  screw-steamer,  of 
3,548  tons,  built  by  John  Koach  at  his  yards,  and  costing  $522,123.21. 

The  City  of  Para,  a  freight  and  passenger  screw-steamer  of  3,532 
tons,  built  by  John  Roach  at  his  yards,  and  costing  $554,903.98. 

The  City  of  New  YorJc,  a  freight  and  passenger  screw-stea*uer  of  3,019 
tons,  built  by  John  Roach  at  his  yards,  and  costing  $763,157.24. 

The  City  of  iSydney,  a  freight  and  passenger  screw-steamer  of  3,01G 
tons,  built  by  flohn  Roach  at  his  yards  and  costing  $700,820.23. 

The  Colima,  a  freight  and  passenger  screw-steamer  of  2,905  tons,  built 
by  John  Roach  at  his  yards,  and  costing  $488,380.08. 

The  Neicport,  a  freight  and  passenger  screw-steamer  of  2,735  tons, 
built  by  John  Roach  at  his  yards,  and  costing  $300,034.85. 

The  Colon,  a  freight  and  passenger  screw-steamer  of  2,685  tons,  built 
by  John  Roach  at  his  yards,  and  costing  $004,750.52. 

The  Acapulco,  a  freight  and  passenger  screw-steamer  of  2,572  tons, 
built  by  tiie  Harlan  &  Hollingsworth  Company,  at  Wilmington,  Del., 
and  costing  $000,232.81. 

The  San  Jose,  a  freight  and  passenger  screw-steamer  of  2,180  tons, 
built  by  John  Roach  at  his  yards,  and  costing  $367,256.08. 

The  San  Bias,  a  freight  and  passenger  screw- steamer  of  2,180  tons, 
built  by  John  Roach  at  his  yards,  and  costing  $350,057.78. 

The  StarhucJc,  a  freight  and  passenger  screw-steamer  of  2,157  tons. 
This  vessel  was  a  foreign  vessel  which  had  been  built  over  and  repaired 
sufficiently  to  comply  with  the  law  authorizing  her  being  registered  as 
an  American  vessel,  and  she  cost  the  company  $320,920.43. 

The  South  Carolina,  a  freight  and  passenger  screw-steamer  of  2,099 
tons,  built  at  Boston,  Mass.,  and  costing  $270,000. 

The  San  Juan,  a  freight  and  passenger  screw-steamer  of  2,076  tons, 
built  by  John  Roach  at  his  yards,  and  costing  $351,044.88. 

The  Clyde,  a  freight  and  passenger  screw-steamer  of  2,016  tons,  built 
by  the  Messrs.  Cramp  at  rhiladelphia,  and  costing  $325,386.29. 

The  Crescent  City,  a  freight  and  passenger  screw-steamer  of  2,003 
tons,  built  at  South  Boston,  and  costing  $314,352.94. 

The  City  of  Panama,  a  freight  and  passenger  screw-steamer  of  1,490 
tons,  built  by  John  Roach  at  his  yards,  and  costing  $332,429.05. 

LINES  AND  LENGTH  OP  TRirS. 

These  vessels  run  on  four  lines:  first,  between  New  York  and  Aspin- 
wall ;  second,  between  Panama  and  various  Central  American  ports  ; 
third,  between  Panama  and  various  Mexican  ports ;  fourth,  between 
Panama  and  San  Francisco;  and,  fifth,  between  San  Francisco  and 
Yokahama  and  Hong-Koog.  , 

The  trip  between  New  York  and  Aspiuwall  occupies  on  an  average 
eight  days,  and  there  is  communication  between  those  ports,  by  steamers 
of  this  company,  three  times  per  month. 

The  length  off  the  trip  from  Panama  to  the  Central  American  ports 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


185 


depends  largely  upon  the  season  of  the  year  and  the  amount  of  freight 
carried,  but  averages  ten  days ;  and  a  vessel  starts  from  Panama,  on 
her  round  trip,  on  an  average  of  three  times  a  month. 

The  length  of  the  trip  between  Panama  and  the  Mexican  ports  is  also 
dependent  upon  the  amount  of  freight  to  be  had,  but  averages  eighteen 
days ;  and  a  vessel  starts  from  Panama,  on  the  round  trip,  on  an  aver- 
age of  once  a  month. 

The  trip  from  Panama  to  San  Francisco  ordinarily  occupies  about 
twenty  days,  and  there  is  a  vessel  each  way  three  times  a  month. 

The  vessels  of  this  company  cross  the  Pacific  from  San  Francisco  to 
Yokohama  and  Hong-Kong  every  twenty  days,  and  the  time  occupied 
by  them  in  so  doing  averages  from  twenty -five  to  twenty-eight  or  twenty- 
nine  days. 

PORTS  AT   WHICH  VESSELS  TOUCH. 

The  following  are  the  i)orts  at  which  the  vessels  of  this  company  call : 

ipinwall,  United  States  of  Colombia.  San  Bias,  Mexico. 


Aspinwall,  United  States  of  Colombia 

Panama,  United  States  of  Colombia. 

Punta  Arenas,  Costa  Rica. 

La  Libertad,  Salvador. 

Acajutia,  Salvador. 

San  Jose  de  Guatemala,  Guatemala. 

Cbamperico,  Guatemala. 

Acapulco,  Mexico. 

Mauzanillo,  Mexico. 


San  Bias,  Mexico. 
Mazatlan,  Mexico. 
San  Juan,  Nicaragua. 
Corinto,  Nicaragua. 
Amapala,  Honduras. 
La  Union,  Salvador. 
Yokohama,  Japan. 
Hong-Kong,  China. 
San  Francisco,  California. 


COMPETITION. 

In  carrying  on  this  business  the  company,  as  in  the  case  of  most  car- 
riers, has  met  competition  from  various  sources,  from  time  to  time.  In 
every  port  of  call,  the  vessels  of  this  company  meet  a  competition  aris- 
ing from  sailing  vessels,  the  amount  of  such  competition  being  depend- 
ent upon  the  activity  of  freight  rates  for  such,  vessels.  Of  late  there 
has  also  arisen  a  competition  from  the  class  of  steam-vessels  known  as 
"  tramps,"  which  turn  up  at  all  points,  and  at  times  are  active  bidders, 
at  extremely  low  rates,  for  freight  of  every  kind  and  nature.  In  addi- 
tion to  the^se  competitors,  this  company  meets,  at  Aspiuwall,  the  ves- 
sels of  the  Atlas  Steam-ship  Company,  running  between  this  port  and 
the  Central  and  South  American  States,  and  those  of  the  West  India 
and  Pacific  Steam-ship  Company  and  the  Harrison  Line,  running  be- 
tween New  Orleans  and  the  ports  of  the  Central  American  and  South 
American  States.  In  addition  to  these,  there  are  also  various  lines  of 
steamers  running  to  Euroi^ean  pofts  from  Aspiuwall,  which,  although 
not  in  direct  competition  for  freight  seeking  this  port,  are  always  de- 
sirous of  obtaining  through  freights  from  China  or  California,  by  way 
of  the  Isthmus. 


186         TRADE  A"ND  TRANSPORTATION  BETWEEN 

Ou  the  western  coast  of  Central  America  and  Mexico  this  company 
meets  the  steamers  of  English,  Mexican,  German,  and  Hawaiian  lines, 
notably  those  of  the  Kosmos  and  Kirsten  lines.  At  San  Francisco  this 
company  meets  active  competition  from  the  steamers  of  the  Occidental 
and  Oriental  Steam-ship  Company,  ships  chartered  by  the  overland 
railroad  companies,  viz:  The  Central  Pacific  and  Southern  Pacific 
Kailroads ;  also  from  the  sailing  vessels  chartered  by  the  Northern 
Pacific  Railroad,  and  the  ships  chartered  by  the  Canadian  Pacific 
Eailway. 

GROWTH  OF  BUSINESS  WITH   CENTRAL  AND   SOUTH  AMERICA. 

As  intimated  above,  there  has  been  a  large  increase  in  the  charac- 
ter and  volume  of  the  business  of  this  company,  particularly  that  car- 
ried on  with  the  Central  and  South  American  States.  This  increase 
has  been  brought  about  by  the  growth  of  mercantile  intercourse  with 
these  countries,  and  also  by  the  development  of  the  foreign  states  them- 
selves. 

MANUFACTURES  OF  THE  UNITED  STATES  IN  DEMAND. 

The  cargoes  carried  by  the  steamers  sailing  outward  from  ports  of 
the  United  States  are  as  varied  in  their  character  as  the  manufacturing 
industries  of  the  States  themselves.  There  is  at  the  present  time,  we 
should  infer  from  the  nature  of  our  cargoes,  an  active  demand  in  the 
South  American,  Central  American,  and  Mexican  States,  for  all  sorts 
of  American  manufactures,  including  cotton  goods,  woolen  goods? 
machinery"  of  all  descriptions,  canned  goods,  etc.  It  is,  however,  the 
amount  of  machinery  exported  by  our  line  which  calls  for  attention. 
This  class  of  goods  includes  not  only  mining  and  milling  machinery, 
but  agricultural  implements  of  every  kind  and  nature,  gathered  from 
the  manufactories  of  the  East  and  West.  For  your  information  on  this 
subject,  we  inclose,  as  requested,  a  copy  of  our  manifests,  one  each 
from  the  port  of  San  Francisco  and  the  port  of  New  York. 

•  MAIL  SUBSIDIES. 

It  has  always  been  the  contention  of  this  company,  and  it  desires  to 
be  clearly  understood  upon  this  subject,  that  any  compensation  made 
to  it  for  carrying  the  mails  should  be  on  as  fair  and  reasonable  a  basis 
as  that  made  to  vessels  engaged  in  the  coastwise  trade,  and  also  to  the 
various  railroads  employed  in  the  United  States  mail  service.  The 
company  has  never  called  for  any  specific  method  of  determining  the 
rate  of  such  compensation.  All  it  desires  is  that  any  rate  established 
as  a  basis  for  compensation  to  other  carriers  doing  mail  service  shall 
be  extended  to  this  company  for  a  like  service;  that- is,  that  an  equal 
service  shall  receive  an  equal  compensation.    Due  regard  should  also 


THE    QNITED    STATES    AND    LATIN    AMERICA.  187 

be  had  to  the  fact  that  the  vessels  of  this  comiiany  arc  competing  at 
various  ports  with  steamers  of  foreign  countries  which  arc  heavily  sub- 
sidized. 

Ed.  Lauteebach. 

Note. — The  Pacific  Mail  Steam-sliip  Company  receives  subsidies  from  tbo  several 
Ceutral  American  Republics  as  follows: 

Mexico $30,000 

Gnateraala 24,000 

Salvador 24,000 

Nicaragua „ <>,  000 

Honduras : 5, 000 

Costa  Rica 12,000 


188  TRADE  AND  TRANSPORTATION  BETWEEN 


XVI. 

THE  WARD  LINE  OF  STEAMERS. 


113  Wall  Street,  New  York, 

September  4,  1889. 
Dear  Sir  :  In  reply  to  your  inquiry  regarding  our  line  of  steamers, 
we  beg  to  submit  the  following  statement : 

ORGANIZATION  AND  FLEET. 

The  Ward  Line,  though  properly  established  under  its  present  stand- 
ard in  1877,  had  been  in  existence,  iu  a  more  or  less  irregular  way,  for 
several  years  previous. 

In  1877  the  present  line  was  started  with  two  steamers,  to  which  ad- 
ditions have  been  made  periodically  until  1888. 

In  188 L  the  business  was  incorporated  under  the  laws  ot  the  State  o 
New  York,  under  the  title  of  the  New  York  and  Cuba  Mail  Steam-ship 
Company,  and  this  company  in  1888  bought  out  the  Alexandre  Line, 
taking  iiossession  of  two  steamers,  so  that  at  present  it  owns  the  follow- 
ing fleet : 

Niagara tous, gross..  2, '2(55 

Saratoga do 2, 426 

Santiago ; do 2, 359 

Cieufnegos do 2,  302 

City  of  Washington do 2, 035 

City  of  Alexandria do 2,480 

All  of  which  are  first-class  iron  steamers,  built  by  John  Koach,  at 
Chester,  Pa. 

AMERICAN  POLICY  OP   THE   OWNERS. 

From  the  very  first  it  has  been  the  desire  of  the  owners  to  keep  a 
strictly  American  line,  and  this  record  has  never  been  broken,  notwith- 
standing the  constant  opposition — so  considered — received  from  our 
own  Government. 

It  had  been  the  intention  of  its  owners  to  encircle  the  entire  island  of 
Cuba  and  other  West  India  islands  with  lines  of  purely  American  ships, 
built  in  the  United  States  and  manned  by  American  citizens,  and  from 
1877  to  1882  this  policy  was  carried  out,  and  would  have  been  continued 


THE    UNITED    STATES    AND    LATIN   AMERICA.  180 

had  not  a  sudden  stop  been  put  to  it  by  the  action  of  Congress  and  by 
special  legislation  by  heads  of  Government  departments,  which  kept 
the  owners  of  this  line  in  constant  fear  of  direct  legislation  against 
American  ships,  so  that  during  a  period  of  from  six  to  seven  years  they 
simply  floated  on,  waiting  to  see  what  would  be  the  result  of  the  mar- 
velous bills,  which  from  time  to  time  were  introduced  into  Congress, 
and  how  long  the  antedeluviau  laws,  made  for  a  time  when  there  were 
no  steamers  nor  vessels  much  larger  than  the  ordinary  fishing  smack 
of  the  present  age,  were  to  be  made  to  apply  to  the  large  ships  now  de- 
manded by  our  general  commerce. 

GOVERNMENTAL  OBSTACLES  TO  BUSINESS. 

When  the  late  Democratic  administration  went  into  power  bills  were 
already  pending  in  Congress  to  admit  foreign-built  ships  under  the 
American  flag,  ships  that,  being  built  at  considerable  less  expense,  and 
by  their  very  construction  could  be  used  in  the  same  trade  at  very  much 
smaller  cost;  and  there  were  statutes  under  which  Government oflicers 
were  constantly  harassing  American  steamers,  carrying  out,  not  the 
spirit,  but  the  technicality  of  the  law.  There  was  a  poor,  very  poor, 
compensation  for  the  transportation  of  the  mails,  and  there  existed 
numerous  taxes  and  fees  which,  taken  all  together,  really  seemed  as  if 
our  Government  was  intent  upon  wiping  out  entirely  f^om  the  ocean 
the  very  little  that  was  left  of  the  American  merchant  marine.  No 
sooner  had  President  Cleveland  organized  his  Cabinet  than  a  system  of 
antagonism  was  established,  under  which  all  American  shipowners 
bowed  down  and  resigned  to  lose  all  that  they  had  invested,  and  allow 
our  British  cousins  to  take  possession  of  the  oceans  and  the  commerce 
of  the  world. 

It  was  at  this  time  that  all  the  American  steam-ship  owners  called  in  a 
body  upon  Postmaster-General  Vilas,  presented  their  grievances,  and 
asked  that  the  $400,000  that  had  just  been  appropriated  by  Congress 
for  the  transportation  of  foreign  mails  be  divided  among  them  in  pro 
rata  proportion  to  the  number  of  miles  traveled  by  each  line,  which  sum, 
small  as  it  was,  was,  if  not  greater,  yet  morally  much  better  than  the 
paltry  amount  that  had  just  been  settled  upon  for  sea  conveyance  of 
mails.  The  history  of  this  controversy  is  well  known  to  every  Congress- 
man and  oflQcer  of  the  Government.  We  will  simply  state  that  the 
Postmaster-General  rejected  the  commands  of  Congress  and  refused  to 
pay  that  sum  to  the  steam  ship  lines,  and  that  upon  their  refusing  to  con- 
vey the  mails  unless  they  were  reasonably  i)aid,  he  inaugurated  a  system 
of  most  disgraceful  mail  routes,  awarded  the  United  States  mails  to  any 
and  every  foreign  vessel  that  he  could  obtain,  and  finally  helped  to  the 
establishment  of  the  overland  route  to  Havana,  now  known  as  the  Plant 
system,  which  naturally  came  into  open  competition  with  the  Ward 
Line. 

Notwithstanding  the  repeated  complaints  of  the  northern  merchants 


190         TRADE  AND  TRANSPORTATION  BETWEEN 

he  persistently  refused  to  permit  the  steamers  to  take  regular  mails, 
and  that — it  is  so  reported  in  Cuba — through  bis  recommendation  the  re- 
ceivers of  letters  privately  carried  by  the  steamers  were  heavily  taxed 
there,  until  it  became  almost  impossible  to  communicate  with  Cuba  by 
the  steamers.  (See  copy  of  letter  written  to  Mr.  Wanamaker  upon  the 
advent  of  the  present  administration.)  Again,  during  all  that  i)eriod 
of  what  certainly  looked  like  open  hostility,  we  were  compelled  to  call 
upon  the  State  Department  for  adjustment  and  legislation  regarding 
numerous  outrages,  which  from  time  to  time  were  being  committed  by 
Spanish  authorities  in  direct  violatiftn  of  commercial  treaties,  and  Mr. 
Bayard  seemed  to  carry  out  the  same  warlike  ideas  of  the  Postmaster- 
General,  taking  no  notice  of  our  just  claims  and  not  even  replying  to 
numerous  letters  written  to  him. 

PRESENT   CONDITIONS  MORE   SATISFACTORY. 

With  these  remarks,  we  think  that  it  will  be  admitted  that  we  have 
reason  to  state  that  we  considered  the  United  States  Government  to  be 
acting  under  direct  opposition  to  the  American  steamers.  We  will  now 
proceed  with  our  general  information,  only  calling  your  attention  to  the 
fact  that  since  the  change  of  administration,  with  only  the  encouraging 
words  of  the  President  and  the  better  disposition  of  the  Cabinet,  Con- 
gress, and  the  people  at  large  towards  the  re-establishment  of  the 
American  flag  on  the  high  seas,  the  American  lines,  and  particularly 
the  Ward  Line,  have  already  moved  to  increase  their  fleet  and  their  busi- 
ness, the  latter  now  having  under  construction  three  steel  steamers  of 
the  most  modern  type,  and  larger  than  any  of  the  fleet  already  named. 

EXTENSION   OF  THE  LINE. 

In  1877,  when  the  line  was  started,  the  two  steamers  ran  only  be- 
tween New  York  and  Havana;  afterward  the  line  was  extended  to  San- 
tiago de  Cuba  and  Cienfuegos,  then  to  l!fassnu  in  the  Bahamas,  and  to 
these  other  ports  were  gradually  added,  so  that  at  i)resent  the  Ward 
Line  may  be  found  at  Havana,  Matanzas,  Cardenas,  Sagua,  Santiago 
de  Cuba,  and  Cienfuegos,  in  Cuba ;  Nassau,  in  the  Bahamas ;  Progreso, 
Campeche,  Frontera,  Tampico,  Tuxpam  and  Vera  Cruz,  in  Mexico. 

All  these  places  are  strictly  producing  (countries  and  not  manufact- 
urers. That  is,  in  Cuba,  sugar,  tobacco,  fruit,  and  woods  are  produced  ; 
in  Nassau,  fruit  and  sponge;  in  Mexico,  hemp,  coflee,  tobacco,  and 
woods ;  and  all  these  countries  are  large  consumers  of  manufactured 
goods,  from  the  world  over. 

COMPOSITION   OF   CARGOES. 

The  question  lias  been  asked,  ''What  do  our  steamers  carry  out!"  and 
the  answer  is  "  every  imaginable  thing ;"  the  wheat,  corn  and  other  grain 
^rown  in  the  far  West ;  the  flour  milled  principally  on  the  Missouri  and 


THE    UNITED    STATES    AND    LATIN    AMERICA.  191 

Mississippi  Rivers;  the  lard,  bacon,  ham,  beef,  and  butter  from  Ohio; 
the  manufactured  agricultural  implements,  glass,  earthen  andiron  ware 
from  Pennsylvania,  and  the  innumerable  articles  of  every  description 
produced  or  made  all  round  us;  machinery  taking  quite  a  i)romiuent 
part  in  a  ship's  cargo.  With  every  article,  our  shippers,  manufacturers, 
and  producers  are  in  direct  competition  with  Europe,  from  where 
numerous  lines  have  been  started  to  those  very  ports,  under  large  sub- 
sidies paid  them  by  their  respective  Governments,  thus  enabling  them 
to  carry  at  a  cheaper  rate  of  freight.  Take,  for  instance,  Spain,  a  manu- 
facturing country  as  well  as  a  producer  of  almost  every  article  shipped 
from  here.  In  the  one  item  of  flour  the  competition  is  tremendous,  and 
necessarily  so,  owing  to  its  very  good  quality,  and  which  we  are  told  is 
only  equaled  here  at  St.  Louis,  Mo.,  from  where  shiiiments  are  being 
made  via  rail  to  New  York  and  to  Kew  Orleans. 

COMPETITION  OF  FOREIGN   SUBSIDIZED  LINES. 

The  point  has  often  been  raised,  in  opposing  any  Government  aid  to 
steam-ship  lines,  that  the  country  at  large  was  not  benefited,  but  only 
the  port  of  New  York.  Is  it  not  as  much  to  the  interest  of  the  west- 
ern miller  on  the  Missouri  and  other  western  sections  to  secure  these 
markets  for  their  flour,  and  to  the  western  farmers  to  find  and  secure 
the  same  for  their  grain,  and  to  the  Ohio  pork  packer  to  add  and  hold 
onto  a  new  consumer  for  his  lard,  his  butter,  and  his  meats,,  and  to  every 
manufacturer  all  over  the  country  to  find  increasing  demand  for  his 
products?  It  can  not  but  be  conceded  that  unless  American  lines  are 
placed  on  some  equality  with  foreigners,  and  particularly  those  coming 
directly  to  the  West  India  ports,  American  lines  can  not  increase  and 
open  new  routes — indeed,  can  not  live — and,  if  they  can  not  live,  the 
commerce  of  this  section  must  decline  and  gradually  drift  over  to 
England,  Germany,  France,  and  Spain. 

Take  the  Cuba  and  Mexican  trade,  to  which  the  Ward  Line  caters, 
and  examine  the  great  advantages  that  a  foreign  line,  heavily  subsidized, 
has.  The  Spanish  Government  pays  this  line  $2,036  per  mile,  and  the 
Mexican  Government  $o,006  per  trip  between  Vera  Cruz  and  New 
York,  via  Havana,  Cuba. 

The  distance  from  Havana  to  New  York  is  1,240  miles. 

Round  voyage,  2,480  miles,  at  $2.036 $5,049.28 

Proportion  of  Mexican  subsidy 3,018.  00 

Total 8,067.28 

THE   SPANISH  SUBSIDY. 

By  their  contracts  the  Spanish  line  has  to  make,  and  does  make, 
three  such  round  trips  per  mouth,  so  that  for  the  thirty-six  trips  made 
in  a  year  that  company  receives  $290,422.08,  without  carrying  anything 
but  the  mails.    Two  steamers  of  a  second  grade  perform  the  service, 


192         TKADE  AND  TKANSPORTATION  BETWEEN 

and  f^iving  them  tlie  very  liberal  valuation  of  a  half  million  dollars, 
they  have  a  net  and  clear  iirofit  of  58  per  cent,  without  doing  a  stroke 
of  work  in  the  carrying  of  freight  or  passengers.  Very  true,  there  is  a 
condition  in  the  Spanish  contract  which  binds  the  steam-ship  company 
to  use  the  excess  of  earnings  allowed  by  the  Government  in  the  exten- 
sion of  lines;  but  before  this  can  be  demanded  the  following  percent- 
ages are  allowed  the  company,  which,  as  we  will  explain  presently,  can 
be  made  as  elastic  as  the  company  may  wish : 

(1)  Deduct  all  running  expenses  of  ships. 

(2)  A  corresponding  proportion  for  extension  of  routes  and  managing 
the  business. 

(3)  Six  i)er  cent,  of  the  value  of  each  ship  for  insurance. 

(4)  Five  per  cent,  ou  the  value  and  20  per  cent,  on  its  fixtures  for  de- 
terioration. 

(5)  Five  per  cent,  from  the  inventory  of  the  ship. 
(G)  Five  per  cent,  for  a  reserve  fund. 

(7)  Expenses  for  board  of  crew,  for  coal,  repairing  machinery,  etc. 

Here  we  have  21  per  cent,  fixed  and  contingent  percentage,  which  can 
easily  be  made  enough  to  cover  entirely  any  excess,  as,  for  instance, 
"  all  running  expenses,  keeping  up  machinery,"  etc.,  and  then  no 
figuring  ife  to  be  done  until  after  the  expiration  of  five  years,  or  after 
the  subsidy  has  reached  the  enormous  amount  of  81,452,110.  Add  to 
this  that  the  Si)anivSh  Government  agrees  to  give  the  company  any  and 
all  the  privileges  that  the  Government  may  see  fit  to  grant  and  will  not 
be  subjected  to  any  special  tax. 

WHAT  THE  UNITED   STATES  PAYS. 

Compare  this  with  the  amount  received  from  the  United  States  by 
the  Ward  Line,  viz,  the  sea  postage,  and  that  is  all.  During  the  quar- 
ter ending  June  30, 1.S89,  the  Post-Oflice  Department  has  paid  the  Ward 
Line  the  sum  of  $334.80  for  the  service  performed  between  New  York 
and  alltlie  ports  before  mentioned  (see  Post-Office  letter*),  which  amount, 
allowing  that  it  will  be  the  same  during  the  entire  year,  gives  $1,330.20, 
against  $290,422  received  by  the  Spanish  Line.  On  the  top  of  this  we 
must  not  forget  that  the  United  States  accords  to  the  Spanish  Line  the 
same  rights  and  conditions  that  are  in  force  for  American  ships,  whereas 
in  Spanish  domain  every  advantage  is  given  to  the  one,  and  every  pos- 
sible obstacle  placed  before  the  other.  Does  it  not  appear  .as  if  by  such 
proceeding  that  the  United  States  was  aiding  a  competing  foreign  lino  by 
tolerating  such  action  against  our  ships  ?     So  much  for  the  Spanish  Line. 

The  Compagnie  G6nerale  Transatlantique,  heavily  subsidized  by  the 
French  Government,  and  a  lately  established  German  line,  well  paid 
by  the  German  Emi)ire,  are  running  regularly  to  Cuba  and  to  Mexico, 
carrying  there  just  the  very  goods  that  our  manufacturers  and  producers 

*  See  Chapter  III,  Part  II. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  193 

are  trying  to  compete  with,  constantly  making  new  markets  and  new 
consumers  for  them,  and  England  runs,  in  her  usual  fashion,  number- 
less tramps,  which,  if  not  subsidized  out  and  out,  perhaps  receive  equal 
benefits,  because  they  run  them  under  the  Spanish  flag. 

RESULT  OF  THE  COMPETITION. 

Let  us  now  see  the  result  of  this  competition.  In  1883,  when  the  Cuba 
trade  from  the  United  States  was  supplied  almost  entirely  by  American 
lines,  a  tierce  of  lard  weighing  a  quarter  of  a  ton  was  taken  to  Havana 
for  $1.25;  or,  say,  $5  a  ton.  It  cost  for  handling  in  and  out  of  the  ship  15 
cents  per  tierce,  and  a  tax  was  paid  to  the  fTOvernment  of  Spain  of  62^ 
cents  per  ton,  so  that  it  netted  the  steamship  $3.78  per  ton  to  pay  the 
running  expenses  of  the  ship  and  leave  a  fair  profit  to  the  owner  tliereof. 

With  the  subsidized  competition  of  the  Si)anish  lines,  and  the  French, 
English,  and  Germans,  the  same  article  has  been  put  down  to  40  cents 
per  tierce,  or  $1.C0  per  ton,  which,  less  cost  of  handling,  leaves  $1  per 
ton.  What  we  say  of  lard  holds  good  for  flour,  for  grain,  for  meats,  for 
manufactured  goods,  and  even  for  passengers  ;  and  who  receives  this 
benefit  *?  Could  it  be  proved  that  the  result  of  this  great  reduction  went 
into  the  pockets  of  our  people,  or  even  into  the  pockets  of  the  Cuban 
consumer,  we  might  consider  one  as  profitable  and  the  other  as  charit- 
able ;  but  neither  is  the  case.  Goods  are  no  longer  sent  to  those  coun- 
tries on  consignment,  thus  permitting  the  consignee  to  sell  at  a  fair 
profit  over  cost.  The  system  of  trade  has  changed  completely  within 
the  last  ten  years,  and  goods  are  now  shipped  on  clean  orders  from 
dealers  who  sell  to  the  consumer,  and  to-day  the  general  price  of  for- 
eign goods  in  Cuba,  allowing  for  differences  of  exchange,  custom-house 
duties  and  other  Government  fees,  is  about  the  same  as  it  was  ten  years 
ago ;  so  that  the  difference  in  the  freight  simply  goes  into  the  pockets  of 
the  Spanish  dealers. 

THE   PASSENGER  TRAVEL. 

The  same  state  of  affairs  rules  with  regard  to  passengers.  The  Ward 
Line,  in  building  their  ships,  devoted  considerable  money  in  elaborate 
cabins,  fitted  with  every  modern  improvement  and  luxury,  and,  until 
1885,  received  $60  for  a  first  class  passage  to  Havana.  Travel  between 
the  United  States  and  Cuba  is  of  a  limited  character,  and  yet  the  ex- 
pense of  fittings  and  fixtures  and  maintenance  of  a  first-class  service  is 
nearly  as  much  as  on  the  transatlantic  ships  carrying  passengers  by 
hundreds,  for  which  reason  the  rate  to  Cuba  must  be  correspondingly 
high.  In  1885  it  was  fixed  at  $50,  which  is  the  rate  now  supposed  to 
be  in  force.  With  the  advent  of  a  line  which  comes  here  with  a  secured 
profit  of  over  $8,000  per  trip,  however,  the  rate  has  been  marked  down, 
and  it  is  not  uncommon  to  have  passages  sold  at  $35  to  Havana,  the 
same  subsidized  competition  having  reduced  the  rates  between  Mexico, 
Vera  Cruz,  and  New  York  to  an  average  of  $G0,  against  $85  ruling  in 
1885. 

S.  Ex.  54 — ^13 


194  TRADE    AND    TRANSPORTATION    BETWEEN 

The  anuual  travel  to  Havana,  up  to  1885,  averaged  about  3,000  each 
way.  The  subsidized  route  inaugurated  by  Postmaster  Vihis  took,  prob- 
ably, one-third  from  the  steamship  lines,  and  the  remaining  two- thirds 
are  now  divided  between  a  foreign  line  that  has  no  price,  because,  being 
heavily  paid  in  advance,  it  naturally  takes  the  passenger  at  the  i)as8eu- 
ger's  price,  throwing  in  free  wines  during  the  trip. 

The  American  Ward  Line  is  running  handicapped,  and  yet  giving 
honest  returns  for  the  reduced  prices  obtained.  The  bulk  of  travel  is 
composed  of  Spanish  peoi)le.  The  few  Americans  who  go  to  Cuba  are 
patriotic  enough  to  stand  by  the  American  flag,  but  the  Spanish  ele- 
ment is  bound  to  favor  the  cheapest  route  every  time. 

MAILS  CARRIED  AT  A  LOSS. 

The  question  is  asked,  What  is  the  difference  between  the  amount 
paid  by  the  United  States  under  the  jjresent  system  and  what  was  paid 
before  the  Postal  Union  took  effect?  We  can  not  determine  this,  because 
at  that  time  we  only  ran  to  Havana,  and  now  we  take  mails  i'oT  many 
other  places;  but  we  are  under  the  impression  that  we  get  now,  for  all 
ports,  not  more,  and  perhaps  less,  than  we  did  before  that  law  went 
into  effect.  Under  the  present  law  the  United  States  Government 
treats  mails  like  any  ordinary  merchandise,  and  the  argument  was 
brought  out  plainly  during  the  controversy  with  Mr.  Vilas,  when  he 
claimed  that  he  could  see  no  reason  why  we  would  take  merchandise  at 
$4  or  $5  per  ton,  and  did  not  want  to  carry  mails  on  the  same  basis. 
Perhaps  that  idea  might  be  remunerative  to  Liverpool  lines,  which  carry 
an  enormous  quantity  of  mail  matter,  but  to  the  Ward  Line  the  result  is 
palpable,  the  mail  being  comparatively  small,  particularly  with  the  rail- 
roads running  as  they  now  do  into  the  very  heart  of  Mexico. 

The  accompanying  letter  to  our  present  Postmaster-General  shows 
the  advantage  of  the  mails  being  carried  by  the  steamers.  The  ad- 
vantages that  the  New  York  merchant  shipper  or  middleman  receives 
by  it  are  identical  with  those  of  the  manufacturer  or  j)roducer. 

THE  COST   OF   HANDLING  MAILS. 

We  have  stated  that  for  a  quarter  of  a  year  the  compensation  for 
the  conveyance  of  mails  to  all  the  ports  mentioned  was  $334.  In  three 
months  we  have  28  departures  and  28  arrivals,  and  we  are  compelled 
to  sustain  horse,  wagon,  and  man,  at  a  heavy  expense,  to  take  and 
to  bring  the  mails  for  every  movement,  and  during  the  three  months  of 
summer,  quarantine  time,  we  are  compelled  to  bring  mails  from  Sandy 
Hook  by  special  boat  at  a  cost  of  $80  per  week.  Now,  four  quarters 
at  a  like  rate  would  bring  us  $1,336,  and  the  cost  of  a  year's  handling, 
as  explained,  is  $1,490.  This,  too,  without  taking  into  consideration 
the  amount  of  money  we  have  to  pay  for  every  ship  inward  and  out- 
ward for  Government  fees  in  various  ways,  such  as  pilotage  (compul- 
sory), custom-house  entrance  aud  clearance  lees,  tax  on  passengers, 


THE    UNITED    STATES    AND    LAl'IN    AMERICA.  195 

port  warden,  tomiajfe  tax  of  15  cents  per  ton,  which  on  cacli  s'lip 
ainoiiuts  to  about  $4,000  per  year. 

We  do  not  know  wliat  compensation  is  allowed  to  the  Plant  steam- 
ers under  (Joverniiient  contract  to  carry  the  Havana  mails,  but  we  are 
told  that  through  the  combination  with  the  railroad  companies  the 
division  gives  them  for  a  run  of  twenty-four  hours  about  $58,339  per 
year. 

The  Ward  Line  is  under  a  contract  with  the  Bahama  government  for 
the  transportation  of  mails,  making  seventeen  trips  between  New  York 
and  Nassau,  for  which  the  British  Government  pays  the  sura  of  £3,700 
l)er  year. 

SUBSIDIES  ADVOCATED. 

A  subsidy  policy  may  be  objected  to,  and  our  free-trade  friends  un- 
doubtedly i)reseut  strong  arguments  against  it,  but  let  us  not  forget 
this  fact:  For  ten  years  the  great  question  of  how  to  restore  the 
American  rtag  on  the  high  seas,  how  to  increase  our  commerce,  and  how 
to  bring  in  the  South  American  coutitries  has  been  discussed,  and  dur- 
ing these  ten  years  the  free-trade  side  of  the  house  has  had  its  way,  all 
the  while  trying  to  make  us  believe  that  under  their  system  all  these 
blessings  would  come ;  but,  after  ten  years,  where  do  we  stand  ?  Lower 
than  ever,  and  sinking  lower  and  lower  every  day. 

Give  the  other  side  a  chance  ;  encourage  our  shipping  interests,  and 
we  will  present  to  the  people  of  the  United  States  American  ships  equal 
to  the  best  or  better,  running  to  every  important  i)ort  in  the  West 
IndieSj'and  to  our  South  American  "  extension,"  and  you  will  see  thou- 
sands of  traders  from  those  now  unknown  regions  coming  over  here  to 
tind  the  goods  they  want,  better  made,  more  easily  to  be  had,  and  just 
as  cheap  as  they  can  be  bought  in  the  old  country.  Give  Americans  a 
chance,  and  let  the  foreign  nations  understand  clearly'  that  if  they  do 
not  accord  the  American  flag  the  same  privileges  that  we  Americans 
give  to  their  flag  in  our  ports,  these  rights  must  cease.  Now,  how  to 
encourage  all  this,  and  how  to  materialize  it  ? 

In  our  opinion  the  bounty  bill,  now  before  Congress,  is  the  best  meas- 
ure. If  passed  there  is  no  doubt  in  our  minds  that  in  two  or  three 
years  the  country  will  have  first  class  lines  of  American  ships  running 
in  every  direction,  and  the  trade  now  virtually  in  the  hands  of  our 
neighbors  across  the  water  will  find  its  way  to  this  side. 
Eespectfully  yours, 

James  E.  Ward  &  Co. 


Exhibit  A. 

Correspondence  with  the  Postmaster- General. 

April  16, 1889. 
Sir:  Referring  to  the  conversation  that  our  Mr.  Hughes  had  with  your  good  self  a 
few  days  ago  regarding  the  West  India  mail  service,  we  now  beg  to  submit  for  your 
cousideration  a  few  remarks  showing  the  workings  of  the  present  system,  and  reasons 


106  TRADE    AND    TRANSPORTATION    BETWEEN 

why  the  regular  steamers  plying  between  this  port  and  the  Island  of  Cuba  should  be 
employed  by  the  Goveiunieut  for  the  couveyance  of  mails,  with  a  fair  compensation 
for  the  same.  We  also  hand  you  the  itiuerarj'  of  onr  line  up  to  the  end  of  May  next, 
it  being  the  inteutiou  of  our  company  to  continue  in  like  order  for  the  present. 

Trusting  that  the  matter  will  meet  with  your  approval  and  favorable  decision,  we 
are,  dear  sir,  very  truly  yours, 

James  E.  Ward  &  Co. 
Hon.  JouN  Wanamaker, 

Postmaster-General,  Washington,  D.  C. 

ARGUMENT. 

(1)  The  regular  mail  route,  via  Tampa,  advertised  to  be  a  daily  one  between  New 
York  and  Havana,  has  never  performed  more  than  three  times  per  week,  often  only 
once  per  week,  and  for  over  a  year  has  been  only  twice  per  week,  as  may  be  readily 
understood  by  examining  the  Plant  Line  schedule  of  steamers  which  sail  from  Tampa, 
Fla.,  on  Mondays  and  Thursdays  only,  the  mails  intended  for  these  sailings  leaving 
New  York  on  Tuesdays  and  Saturdays  at  9  p.  m.,  and  should  arrive  at  Havana  on 
Wednesday  and  Saturdays  in  the  morning. 

For  return  of  mails  the  steamers  of  the  Plant  Line  leave  Havana  twice  per  week, 
on  Wednesdays  and  Saturdays,  reaching  New  York  on  Sundays  and  Wednesdays. 

(2)  The  Ward  Line  steamers  leave  New  York  on  Wednesdays  and  Saturdays,  and  , 
can  deliver  the  mails  on  Mondays  and  Thursdays,  the  latter  often  on  Wednesdays  in 
the  afternoon,  and  for  return  they  leave  Havana  on  Thursdays  and  Saturdays,  reach- 
ing New  York  on  Mondays  and  Wednesdays. 

(3)  It  must  be  assumed  that  the  bulk  of  mail  is  a  business  one,  much  of  it  referring 
to  merchandise  shipped  by  the  steamers  that  sail  from  New  York,  as  already  explained ; 
say,  papers  and  shipping  docum  nts  necessary  to  make  entries  at  the  Cuban  custom- 
house, and  the  failure  to  produce  which  in  twenty-four  hours  after  arrival  of  the 
vessel  is  punishable  by  the  customs  regulations  by  tine  impose<l  upon  the  consignee, 
and  causing  delays  in  the  discharge  of  cargo  and  annoying  detentions  in  the  move- 
ments of  the  ships  which  have  to  go  to  other  ports  in  Cuba  and  to  various  Mexican 
ports. 

If  the  ship  carried  these  mails  shipping  documents  would  be  in  the  hands  of  con- 
signees invariably  at  the  same  time  that  the  goods  reach  Havana,  and  all  fines, 
delays,  and  detentions  would  be  at  once  avoided. 

(4)  Saturday  mail. — If  a  train  to  Tampa  fails  to  make  all  connections  promptly,  the 
Plant  steamer  leaves  without  the  mails,  which  have  to  wait  at  Tampa  until  the  next 
sailing,  three  days  later,  reaching  Havana  on  Saturday  in  place  of  Wednesday,  while 
the  steamer  leaving  New  York  the  same  day  is  at  Havana  on  Wednesday  afternoon. 

Tuesday  mail. — As  the  steamers  leave  New  York  on  Wednesday,  said  Tuesday  mail 
call  have  no  reference,  or,  at  all  events,  but  little,  to  the  cargo  then  being  made  up 
in  New  York  for  the  steamer  which  leaves  the  following  day,  and  the  mails  referring 
to  such  cargo,  invoices,  and  other  valuable  information  are  consequently  held  until 
Saturday,  reaching  Havana  on  Wednesday,  against  the  arrival  of  the  steamer  early 
on  Monday,  and  the  only  salvation  against  tines  has  b(MMi  and  is  the  sending  by  New 
York  shippers  of  a  large  bulk  of  mail  matter  by  the  steamers  which  take  it  at  great 
inconvenience  and  expense  without  remuneration  whatever,  and  simply  to  help  the 
New  York  Cuban  trade. 

(5)  Up-mails. — The  Florida  route  mail  leaves  Havana  on  Wednesday,  closing  at 
Havana  post-ofiQce  at  11  a.  m,,  and  therefore  can  have  no  reference  to  the  cargo  then 
being  prepared  for  the  regular  steamer,  which  sails  on  Thursday  evening.  Said 
Wednesday  mail  reaches  New  York  on  Sunday,  and  is  practically  in  the  hands  of 
merchants  on  Monday  morning.  The  steamer  that  sails  Thursday  at  6  i).  m.  arrives 
at  New  York  on  Monday  morning,  so  that  the  mails  by  the  steamer,  29  hours  ^ater 
from  Havana,  are  delivered  in  New  York  at  the  same  timOi 


UtE    UNITED    STATES    AND   LATIN   AMERICA.  197 

The  next  mail  leaves  Havana  on  Saturday,  reaching  New  York  for  delivery  on 
Wednesday  morning  at  the  same  time  that  the  steamer  that  leaves  Havana  Satur- 
day at  6  p.  m. 

There  is,  therefore,  nothing  gained  actually  by  the  up-mail  system,  via  Tampa, 
and  the  Havana  postmaster,  knowing  this,  makes  a  mail  for  each  steamer  and  sends 
it  direct  to  New  York. 

(fi)  These  steamers  have  been  running  a  number  of  years  with  the  greatest  regu- 
larity, and  at  all  seasons  of  the  year  perfortn  their  voyages  generally  on  time,  while 
the  Tampa  steamers  have  been  withdrawn  during  the  summer  months,  reducing  the 
communication  to  one  per  week,  and,  as  was  the  case  last  year,  the  moment  that  the 
health  authorities  of  Florida  apprehend  any  danger  of  yellow  fever  the  railroad  con- 
nections are  broken,  and  the  mails  are  from  five  to  ten  days  in  transit. 

The  steamers  arriving  in  New  York  during  the  summer  deliver  their  mails  always 
on  time,  even  if  the  ships  are  quarantined. 

(7)  Merchants  here  and  vicinity,  in  their  anxiety  to  avoid  fines  in  Cuba  for  the  non- 
arrival  of  their  shipping  documents,  have  been  in  the  habit  of  sending  such  special 
mail  by  the  steamers,  which  was  delivered  at  Havana  by  messengers,  at  considerable 
expense,  until  the  Havana  post-office,  acting  under  advice  of  the  United  States  postal 
authorities,  demanded  the  delivery  at  the  post-office  of  all  such  majl,  and  notwith- 
standing that  they  are  covered  by  the  proper  stamped  envelopes,  have  been  demand- 
ing and  collecting  triple  postage  as  a  fine,  a  tax  which  creates  great  dissatisfaction, 
and  is  the  cause  of  constant  complaint ;  the  steam-ship  line,  though  entirely  innocent 
in  the  matter,  coming  in  for  considerable  of  the  blame. 

(8)  Compensation. — The  rates  allowed  steamers  have  never  been  adequate,  and  this 
is  particularly  noticeable  in  the  West  India  service,  because  the  expense  of  carrying 
and  delivering  was  the  same — and  we  are  not  sure  but  what  it  was  greater — as  the 
European  mails,  being  so  much  larger,  naturally  i>roduce  more  in  dollars  and  cents; 
and,  so  far  as  the  West  India  mails  were  concerned,  the  Government  never  made 
allowance  for  the  expense  of  the  ships  which  had  to  send  after  the  mails,  carry  it, 
deliver  it,  and,  during  four  months  of  the  year,  pay  for  steamboats  to  bring  it  from 
quarantine  at  a  heavy  expense  and  always  the  same,  no  matter  whether  there  was 
one  or  one  hundred  bags,  to  say  nothing  of  the  responsibility  involved.  The  Post- 
Office  Department  is  always  on  the  qui  vive  and  holding  us  responsible  for  the 
slightest  delay  or  discrepancy  in  its  delivery.  The  Government's  claim  that  these 
American  ships  were  greatly  benefited  by  reason  of  having  mail  certificates  in  West 
India  por^  falls  to  the  ground  by  simply  stating  that  for  a  period  of  four  years  we 
have  been  running  without  them  and  have  not  had  the  slightest  ripple  in  those  for- 
eign waters. 


June  5,  1889. 
Dkar  Sir  :  As  an  illustration  'of  the  facts  pointed  out  to  you  in  previous  corre- 
spoiidence,  regarding  the  Havana  mails  via  Tampa,  we  have  now  to  mention  what 
has  just  occurred.  Owing  to  interruptions  along  the  line  of  the  railroad  south,  the 
mails  that  left  Havana  Wednesday,  May  29,  at  1  p.  m.,  did  not  reach  New  York 
until  yesterday,  Tuesday,  June  4,  at  noon ;  whereas  our  steamer.  City  of  fVash- 
ington,  which  left  Havana,  Thursday,  May  30,  delivered  what  mails  she  brought 
on  Monday,  June  3,  at  .5  p.  m. 

Upon  orders  sent  via  Tampa  depended  the  freight  to  be  forwarded  by  our  steamer 
leaving  to-morrow,  which,  in  consequence  of  the  delay,  is  materially  reduced,  causing 
us,  as  carriers,  considerable  loss,  and  to  the  merchants  of  the  Cuba  trade  much  in- 
convenience, as  there  wil!  be  no  departure  for  Santiago  de  Cuba  and  Cieufuegos  until 
July  5,  after  to-naorrow's  ship. 
Respectfully  yours, 

James  E.  Ward  «t  Co. 
Hon.  John  Wanamaker, 

Poatmaater-General,  Washington,  D,  C. 


108         TRADE  AND  TRANSPORTATION  BETWEEN 


XVII. 

UNITED  STATES  AND  BRAZIL  MAIL  STEAM  SHIP  COMPANY. 


New  York  City,  September  20, 1889. 
Dear  Sir  :  I  think  the  best  mauner  to  furnish  you  the  desired  in- 
formation asked  for  by  you  would  be  to  answer  your  categories  in  the 
rotation  statefl  in  your  letter. 

HISTORY   OF   THE   COMPANY    FROM   ITS   ORIGIN. 

To  answer  this  correctly  it  will  be  necessary  to  give  briefly  a  retro- 
spective r^sum6  of  the  previous  line  that  was  engaged  in  Brazilian 
trade  and  the  reason  for  its  withdrawal. 

In  1877  the  late  Mr.  John  Roach,  with  persevering  industry,  procured 
a  ten-j^ear  contract  with  the  Brazilian  Government — a  monthly  mail 
contract  averaging  (at  the  then  rate  of  exchange)  about  $G,0()0  per 
voyage— and  it  was  fully  expected  that  the  United  States  Government 
would  supplement  fairly  the  Brazilian  Government  in  mail  pay.  You 
will  please  bear  in  mind  the  long  steam  is  through  the  tropics,  where 
the  evaporation  is  very  great,  hence  the  density  of  the  sea- water  is  very 
great;  this,  with  the  heated  water  alongside,  used  for  cir(uilating  pur- 
I)0se8,  requiring  great  speed  of  circulating  pump  for  condensing  pur- 
poses, and,  as  stated  above,  the  salt-feed  renders  this  service  heavy  and 
expensive  on  engines  and  boilers.  The  heavy  cost  of  coal  in  Brazilian 
ports,  the  heavy  port  charges,  and  the  absence  of  wharves  to  lie  at, 
cause  all  cargoes  to  be  lightered  at  ship's  expense. 

DIFFICULTY   OF  BUILDING  UP  A  TRADE. 

And  where  a  steam-ship  has  to  inaugurate  a  new  channel  of  trade 
and  divcnt  the  same  from  other  routes  who  are  subsidized  by  their  gov- 
ernments for  the  very  purpose  of  <liverting  to  their  oicu  countries  the 
valuable  trade  of  South  America,  it  requires  energy  and  perseverance 
and  great  outlay  of  time  and  money  to  divert  from  already  established 
routes  to  one  of  our  own  country.  It  may  be  asked,  why  go  into  trade 
that  does  not  show  an  immediate  prospect  of  giving  a  fair  return  to  the 
investors'?    The  answer  is  that  it  is  only  by  patient,  persevering,  Intel- 


THE   UNITED    STATES    AND    LATIN    AMERICA.  199 

ligent  (ay,  and  costly)  work  tliat  you  can  divert  coinmcrce  from  au 
already  established  channel.  It  takes  years  to  do  it.  You  have  to  sat- 
isfy the  Brazilian  merchant  of  the  sure  permanency  of  your  line  before 
he  will  change  his  established  business  relations. 

Now  the  advantage  that  is  derived  from  the  opening  up  of  a  new 
direct  market  for  our  own  country  and  our  own  citizens  is  so  apparent 
that  no  further  comment  is  necessary.  Our  owu  country  and  our  own 
citizens  are  immediately  benefited.  And  to  silence  at  once  and  for- 
ever the  cry  that  this  nation  can  not  compete  with  cheap  labor  coun- 
tries I  herewith  inclose  you  as  an  appendix  to  this  letter  certified 
copies  of  manifests  and  the  state  that  originally  produced  the  article. 
Please  bear  in  mind  that  these  are  certified  copies,  and  are  matters  of 
public  record  and  verification.*  And  no  merchant — Brazilian,  Euro- 
pean, or  American — will  purchase  from  this  country  if  he  can  get  his 
goods  cheaper  elsewhere  with  stated  regularity.  And  the  latter  is  one 
of  the  most  important  factors  in  this  great  question.  If  the  line  is  run 
regularly,  systeniatically,  and  punctually  the  consignee  docs  not  require 
to  lay  in  more  than  he  requires  or  more  than  the  demands  of  his  mar- 
ket justifies;  he  calculates  the  requirements  of  his  market  until  the 
next  arrival,  knowing  that  it  will  be  on  baud  on  a  specified  day ;  and 
just  as  the  requirements  justify  so  the  shipments  are  made.  This  en- 
genders the  only  safe,  legitimate,  and  conservative  manner  of  trading 
and  doing  business.  It  shuts  off  speculation  and  cornering,  with  its 
attendant  results  (nearly  always  sending  in  a  disaster  to  some  one,  and 
breeding  an  unhealthy  feeling  in  the  market),  because  the  actual  wants 
are  supplied  as  required. 

It  was  a  just  conclusion  and  expectation  that  the  late  Mr.  John  Roach 
arrived  at,  namely,  that  where  this  nation  derived  so  much  benefit  at 
once  from  the  establishment  of  a  line  to  Brazil,  and  which,  as  I  have 
imperfectly  endeavored  to  show,  could  not  pay  him  for  some  years  aft- 
erwards, and  where  he  was  competing  against  foreign  lines  who  were 
sufficiently  and  adequately  paid  by  their  Governments  at  once ;  it  was 
a  just  expectation  and  conclusion  to  arrive  at,  namely,  that  the  United 
States  Government  would  supplement  the  Brazilian  Government  and 
give  adequate  compensation  for  the  mail  service. 

RETROSPECTIVE  R:6sUME   OF  TRADE. 

It  is  a  matter  of  history  that  Congress  did  not  take  that  view,  and  in 
consequence  Mr.  Roach  was  obliged  to  withdraw  his  ships,  and  he  sold 
same  to  the  Pacific  Mail  Steam-ship  Company  at  a  loss  of  C6  per  cent. 
During  the  time  Mr.  Roach's  line  was  running  the  imports  increased 
very  rapidly ;  directly  it  was  withdrawn  as  quickly  they  fell  off,  and 
the  Brazilian  trade  became  speculative  and  unhealthy,  and  it  is  a  mat- 
ter of  record  which  the  mercantile  agencies  can  confirm,  that  during 
the  interval  between  the  existence  of  Mr.  Koach's  line  and  the  perma- 


*Abstracts  of  these  manifeets  appear  in  a  preceding  chapter 


200  TRADE    AND    TRANSPORTATION  BETWEEN 

nent  establisliment  of  the  United  States  and  Brazil  Mail  Steamship 
Company  that  there  were  more  failures  of  mercantile  houses  doing 
business  with  Brazil  in  this  country  than  at  any  other  period. 

Therefore,  a  number  of  prominent  citizens  and  merchants  doing  busi- 
ness principally  with  South  America,  seeing  that  attention  was  again 
being  drawn  by  Congress  to  this  very  important  matter,  they  reasonably 
inferred  that  our  legislators,  the  more  they  investigated,  the  more  they 
would  see  the  absolute  necessity  of  adopting  an  intelligent  policy  (as 
other  nations  do)  in  this  respect.  Confident  in  this  belief,  these  patri- 
otic gentlemen,  in  the  desire  to  see  their  own  country  in  the  possession 
of  its  natural  markets,  which,  from  their  geographic  and  climatic  con- 
ditions, want  what  we  produce  and  manufacture,  and  from  the  same 
causes  we  want  what  they  produce  (and  it  is  needless  to  say  these  are 
the  very  best  conditions  under  the  sun  to  bring  nations  together  in 
trade),  determined  to  establish  the  CTnited  States  and  Brazil  Mail  Steam- 
ship Company,  as  before  stated,  under  the  belief  that  Congress,  with  its 
awakened  interest  would  adequately  pay  for  carrying  its. own  mails 
(which  they  are  bound  to  do  under  the  postal  convention  of  Berne),  and 
a  patriotic  desire  to  foster  trade  to  our  legitimate  markets  and  retain 
our  flag  on  the  ocean. 

Please  bear  in  mind  that  these  American  gentlemen  have  not  received 
one  cent  from  their  investment  from  the  date  of  its  charter,  April  1882, 
up  to  date.  And  they  paid  100  cents  on  the  dollar  for  every  share  they 
own.  This  comi)any  has  gone  sturdily  on,  and  by  persevering,  econom- 
ical, efficient  policy  suceeded  in  increasing  the  value  of  exports  steadily. 
Does  this  not  show  that  what  is  here  recited  is  true,  and  that  these 
patriotic  gentlemen  were  right  in  their  deductions  ? 

FLEET   AND  VOYAGES. 

You  also  ask  "the  number  and  character  of  your  ships ;  their  tonnage; 
where  they  were  constructed ;  their  freight  and  passenger  capacity  ; 
the  ports  at  which  they  touch ;  and  the  frequency  and  length  of  the 
voyages."  ^ 

This  company  own  three  steam  ships  and  two  now  building,  namely. 

Steam-ship  Advance,  rated  A  1,  highest  class,  2,G0o  tons  gross,  eighty 
saloon,  one  hundred  steerage  passengers.  Cargo  capacity  2,900  tons 
weight  and  measurejnent,  and  000  tons  coal  in  bunkers. 

Steam-ship  Finance,  rated  A  1,  highest  class,  2,G03  tons  gross,  eighty 
saloon,  one  hundred  steerage  passengers.  Cargo  capacity  2,900  tons 
weight  and  measurement,  and  900  tons  coal  in  bunkers. 

Steam  ship  AUi<tnca,  rated  A  1,  highest  class,  2,!>8.")  tons  gross,  one 
hundred  and  twenty  saloon,  one  hundi-ed  and  fifty  steerage  i)ass<'iiger8. 
Cargo  capacity  3,500  tons  weight  and  measurement,  and  1,200  tons 
coal  in  bunkers. 

Steam-ship  Seguranca  (now  building),  3,500  tons  gross,  two  hundred 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


201 


saloon,  two  hundred  steerage  pasvsengers.  Cirgo  capacity  4,000  tons 
weight  and  measurement,  and  1,200  tons  coal  in  bunkers. 

Steam-ship  Vigilanca  (now  building),  3,500  tons  gross,  two  hundred 
saloon,  two  hundred  steerage  passengers.  Cargo  capacity  4,000  tons 
weight  and  measurement,  and  1,200  tons  coal  in  bunkers. 

The  above  steam-ships  were  built  and  are  building  on  the  Delaware 
River,  by  the  Delaware  River  Trou  Ship  Building  and  Engine  Works, 
Chester,  Pa. 

These  steam-ships  leave  New  York  at  about  twenty-ode  days'  inter- 
vals, and  generally  on  the  third  day  afterwards  leave  Newport  News, 
Va.,  with  United  States  mails  and  manufacturers'  produce  from  a  cen- 
tral point  in  this*  country,  and  enable  correspondents  to  take  advan- 
tage of  the  latest  hour  for  mailing  (by  fast  mail  trains  to  Newport 
News,  Va). 

PORTS   VISITED   BY   THE   BRAZIL   LINE. 

The  following  is  a  tabulated  statement  of  ports  of  call  after  leaving 
Newport  News,  embraced  in  the  United  States  and  Brazil  Mail  Steam- 
ship Company's  system,  also  correspondin  g  distances  from  said  ports 
of  call  from  Liverpool ;  population  of  said  ports  and  monthly  consump- 
tion of  flour : 


Ports. 


St.  Thomas  (disf  ribntiug  i)oint  Danish  We.st 
Indies  to  several  adjacent  islands) 

Martinique,  French  VVoat  Indies 

Barbadoes  (disriibutiiig  point  for  British 
West  Indies  mail  and  lueichaudise) 

Para  (7.5  miles  up  Para  River,  Brazil  branch 
of  Amazon.  Distributing  point  for  Ama- 
zonian Valley  and  River;  extends  3,000 
miles) 

Maranhara.  capital  of  province ;  Brazil  a 
tidal  harbor.  Distributing  point  for  ad- 
jacent provinces 

Pernambuco,  capital  of  province ;  Brazil  a 
tidal  harbor.  Distributing  point  for  ad- 
jacent provinces 

Bahia,  capital  of  province ;  Brazil  easy  of 
access.  Distributing  point  for  adjacent 
provinces 

Rio  De  Janeiro,  capital  of  Brazil :  Brazil 
easy  of  access.  Distributes  to  alt  points 
south 

Santos,  Brazil 


Population. 


40,  000 
32, 000 

180,000 

4f>,  000 
32, 000 
130,  000 
140,  000 
400, 000 


Distance 

from 

New  York. 


1,440 
1,717 

1,880 


3,022 
3,397 
4.177 
4,563 


5,308 
5,516 


Distance 

from 
Liverpool. 


3,  560 
3,626 

3,  682 

4,062 

4,150 

4,886 

5,200 

5.350 
5,280 


Barrels  of 

flour 
per  month. 


500 

10.  000 
12, 000 
40, 000 


Names  of  ports  that  immediately  connect  in  distribution  and  for- 
warding mail  and  cargo  on  through  bills  of  lading  with  this  company's 
steamers  from  St.  Thomas,  Danish  West  Indies,  and  Barbadoes,  British 
West  Indies,  in  Caribbean  Sea :  Antigua,  St.  Kitts,  St.  Lucia,  Mont 
Serrat,  St.  Vincent,  Guadeloupe,  Dominica,  Trinidad,  Demerara,  Porto 
Rico,  Martinique. 

Names  of  ports  that  immediate  and  close  connection  is  made  with  in 
distribution  and  forwarding  mail  and  cargo  on  through  bills  of  hiding 
with  this  company's  steamers  from  points  of  call  in  Brazil:  Cear4,  Pax-. 


202  TRADE    AND    TRANSPOUTATtON    fiHTWEEN 

anagua,  Antonia,  Santa  Catharina,  Rio  Grande  do  Sul,  Pilotas,  Porto 
Alegre,  Brazil,  Montevideo  (Uruguay),  Buenos  Ay  res,  Rosario  (Argen- 
tine Republic). 

VALUE   OF  THIS  LINE   TO   THE  UNITED   STATES. 

It  may  be  an  interesting,  as  it  is  an  incontrovertible  fact,  to  mention 
here  that  since  the  establishment  of  this  line  the  freight  on  coffee  has 
never  gone  above  50  cents  per  bag  (of  132  pounds)  from  Brazil  to  New 
York,  and  the  latter  only  by  one  ship  once.  The  average  freight  since 
the  establishment  of  this  line  has  been  28  cents  per  bag.  Before  the 
establishment  of  this  line  $1  per  bag  was  the  niaxiuium  and  GO  cents 
the  average  freight  per  bag,  the  difference  in  money  value  to  our  citi- 
zens in  this  item  alone  amounting  to  $3,800,000  since  the  establishment 
of  the  United  States  and  Brazil  Mail  Steam-ship  Company.  Other 
items  of  import  and  export  can  be  summarized  in  the  same  manner  in 
a  lesser  degree. 

COST  OF  CONSTRUCTION  AND  MAINTENANCE  OF  SHIPS. 

Second  query:  "What  is  the  cost  of  constructing  and  maintaining 
your  ships  as  compared  with  European  ships  of  same  description?" 

The  cost  of  similar  steam-ships  built  and  classed  in  the  same  manner 
with  the  same  accommodations  and  mechanical  appliances  for  rapid 
handling  of  cargo  in  Great  Britain  would  be  18  per  cent,  less  than  in 
this  country.  The  steam-ships  Finance  and  Advance  cost  $350,000  each ; 
the  AUianca  cost  $380,000 ;  the  new  steam-ships  Segnranea  and  Vig- 
ilanca  will  cost,  as  per  contract,  nearly  $450,000  each. 

The  cost  of  maintenance  is  about  25  per  cent,  more  in  favor  of  Euro- 
pean steamers  generally,  ship  for  ship,  in  all  respects  equal  in  speed, 
power,  passenger  accommodation,  etc. ;  but  from  the  very  many  me- 
chanical appliances,  also  the  application  of  a  patented  device  for  cir- 
culating and  generating,  also  an  improved  hot  blast  (.^Iain's  system) 
this  company  can  and  does  operate  its  ships  on  almost  equal  terms,  as 
regards  expense,  with  foreign  ships  of  the  same  class  and  character. 
Please  bear  in  mind  I  am  jiow  quoting  in  comparison  shii)s  of  the  same 
class  as  this  company  owns,  not  ships  of  the  genus  "  tram]),"  that  are 
simply  pot-metal  boxes  afloat. 

FEATURES   OF   COMPETITION — "  TRAMPS  "    AND    SUBSIDIES. 

Third  query:  "  What  competition  do  you  meet  with,  either  from  New 
York  or  Europe,  either  by  "  tramps  "  or  by  regular  lines  of  American 
ships?" 

This  question  is  a  most  prolific  one.  Besides  the  great  and  substan- 
tial mail  pay  given  by  European  nations  to  regular  lines,  the  accursed 
systems  or  laws  that  allow  these  irresponsible  foreign  "  tramps "  to 
.trade  from  our  own  country  to  other  countries  other  than  their  own, 


THE    UNITED    STATES    AND    LATIN    AMERICA.  203 

making  this  country  their  base  of  operations  and  headquarters,  and 
where  they  are  not  amenable  to  our  laws  as  our  ships  are,  is  the  gross- 
est injury  and  injustice  that  has  ever  been  perpetrated. 

We  have  as  competitors  two  English  and  one  German  (so-called) 
lines,  both  "tramps"  pure  and  simple,  which  unite  invariably  with 
their  transportation  business  a  commercial  one.  In  nearly  every  case 
their  ships  are  old  (very  old)  vessels,  and  in  some  instances  "off  their 
letters  "j  in  other  words,  have  no  class  in  any  classification  society. 

HOW  TRAMP   VESSELS  ARE  MANAGED. 

These  vessels  leave  their  native  country  where  they  are  amenable  to 
the  inspection  laws,  wherein  at  stated  periods  the  hull,  boilers,  and  en- 
gines are  inspected,  and  the  necessary  repairs  required  must  be  made. 
They  come  to  this  country  and  ply  so-called  lines,  manned  by  their  own 
countrymen  (naturally),  who  are  paid  at  a  much  lower  rate  of  wages 
than  is  paid  American  seamen.  They  generally  lay  in  a  very  large 
supply  of  salted  provisions  and  all  they  require  in  this  country  is  small 
supplies  of  fresh  beef,  etc.,  coal,  and  a  limited  amount  of  stevedore 
labor.  Now,  the  statement  may  be  made  that  these  seamen  whom  these 
foreigners  ship  would  desert  in  our  ports  where  they  can  by  so  doing- 
get  higher  wages;  to  a  very  limited  extent  this  is  true;  but  they  take 
care,  if  possible,  to  ship  married  men,  and  with  offer  of  allotment  notes, 
leaving  half  i)ay  to  their  families,  and  these  seamen  must  invariably 
find  sureties  that  they  will  not  desert  the  ship  during  the  period  agreed 
upon  in  the  ship's  articles.  You  can  readily  see  by  this  method  that 
they  do  keep  these  crews  at  the  low  rate  of  pay.  If  repairs  are  re- 
quired to  their  machinery,  they  invariably  send  for  duplicate  parts  or 
send  the  damaged  part  to  their  own  country  for  renewal  or  repairs. 

DANGEROUS  CONDITION  OF  THE   TRAMPS. 

These  "  tramps"  run  year  after  year — old  vessels  subject  to  no  law 
here  by  which  legal  supervision  can  be  exercised.  Their  boilers  may 
be  on  the  point  of  explosion,  their  machinery  may  be  in  a  dangerous 
condition,  their  hulls  may  be  in  the  last  stage  of  decay,  their  ships 
may  be  undermanned,  their  boats  may  not  be  fit  to  float  when  lowered 
from  the  davits,  yet  there  is  no  law  in  this  country  to  reach  these  for- 
eigners as  long  as  they  keep  away  from  their  own  country,  and  as  long 
as  it  suits  the  convenience  or  cupidity  of  their  owners.  It  no  doubt 
will  surprise  you  to  learn  that  there  is  little  if  any  difference  made  in 
the  rate  of  premiums  on  cargo  policies  charged  by  our  local  insurance 
companies.  This  is  due  to  the  keen  competition  amongst  them.  As  a 
natural  sequence  these  ships,  to  get  cargo  at  all,  must  take,  and  do 
take,  a  lower  rate  of  freight.  I  state  here  as  a  positive  fact  that  the 
writer  asked  the  mate  of  one  of  these  "  tramps  "  "  if  it  was  not  positively 
dangerous  to  go  to  sea  in  the  steamer  he  was  in,"  and  I  further  asked 


204  TRADE    AND    TRANSPORTATION    BETWEEN 

him  "  how  many  men  he  had  in  his  watch."  His  reply  was  "the  lookout 
and  the  man  at  the  wheel."  I  asked  him  then  "  how  do  you  handle  your 
canvass  f  The  mate  replied,  "  1  take  the  man  off  the  lookout,  lash  the 
wheel,  and  take  the  man  from  there,  and  I  go  also."  He  further  added, 
"  Nothing  but  dire  necessity  keeps  me  at  this  dog's  life." 

Now  in  a  case  such  as  this  is,  here  is  this  under  manned  ship  going 
on  ahead,  no  one  steering,  no  one  on  the  lookout,  yawing  about,  abso- 
lutely dangerous  toother  craft  on  the  ocean.  We  have  no  law  to  reach 
these  vessels,  although  their  cargoes  may  be  wholly  owned  by  United 
States  citizens  and  insured  in  United  States  insurance  companies. 
Does  it  not  strike  you  that  these  "tramps"  are  absolutely  uusea- 
worthy  ?  If  these  ships  would  only  carry  passengers,  our  laws  would 
reach  them,  and  all  the  requirements  of  our  laws  would  have  to  be  met 
fully,  but  when  these  crafts  do  carry  passengers,  they  evade  our  laws 
by  putting  these  passengers  on  their  articles  in  fictitious  positions. 
Being  foreigners,  this  country  has  no  control  over  their  articles ;  they 
are  deposited  at  their  consulates,  and  their  consul's  certificate  to  our 
custom-house  is  all  that  is  produced. 

MIXING  COMMERCIAL   BUSINESS   INTO   TRANSPORTATION. 

To  show  you  another  phase  of  this  gross  outrage  upon  our  country  : 
We  have  as  competitors  in  our  system  and  route  these  so-called  lines, 
who  are  merchants  and  exporters  dealing  in  Brazil,  etc.  These  mer- 
chants and  exporters  are  located  in  Europe ;  their  interests  lie  there, 
their  extended  credits  are  located  there.  Does  it  not  stand  to  reason 
that  they  will  (and  they  do)  discriminate  in  favor  of  themselves  ?  For 
instance,  to  secure  a  constituent  from  an  American  house  they  will 
carry  American  produce  and  manufactures  at  a  lower  rate  than  the  fair 
trader  can  do  ;  ostensibly  they  will  quote  a  freight  rate,  but  they  will 
so  wrap  up  their  cost,  freight,  and  charges  that  it  will  be  difficult  to  dis- 
integrate them.  Again,  where  an  item  of  commerce  enhances  in  value, 
how  easy  to  shut  out  other  dealers  and  then  fill  their  ship.  Now,  the 
writer  contends  that  it  is  the  grossest  injustice  in  any  company,  steamer, 
or  vessel  that  advertises  for  patronage  before  the  public,  to  discrimi- 
nate in  rates  either  in  their  own  or  any  one's  else  favor.  It  is  supposed 
by  the  merchant  that  he  is  competing  for  business;  that  he  is  doing  so 
upon  equal  terms  with  all.  He  does  not  suppose,  and  ought  not  to  be 
subjected  to  the  supposition,  that  where  by  his  energy,  skill,  fore- 
thought, and  enterprise,  he  ships  and  consigns  items  of  commerce,  that 
he  is  laying  bare  all  he  has  striven  for  to  his  competitor.  The  owner  of 
these  accursed  "  tramps,"  knowing  the  character  of  the  merchant  I  have 
described,  immediately  ships  the  same  article,  nominally  under  another 
name,  and  is  it  not  natural  that  this  "tramp"  owner  should  give  him- 
self a  lower  rate  of  freight  and  completely  nullify  the  efforts  of  the  fair 
trader  above  described,  and  send  him  disgusted  oft' the  field? 


THE    UNITED    STATE.S    AND    LATIN    AMERICA.  205 

HOW  THEY  CUT  INTO   THE  TRADE. 

These  "tramps"  know  by  the  published  schedule  the  sailiugs  of  this 
company  (the  same  rules  apply  to  other  regular  Anierican  lines) ; 
they  then  advertise  to  leave  a  day  or  so  ahead  of  this  company's  date, 
knowing  fully  they  can  not  possibly  sail.  Then  they  wait  for  the  orders 
the  regular  American  mail  steam-ship  brings  in,  postponing  their  trip 
for  theonly  reason  they  are  not  fully  loaded,  and  just  sail  as  suits  their 
convenience.  These  vessels  never  keep  faith  with  the  public  unless  it 
suits  their  convenience  and  pocket.  True,  postponements  at  rare  inter- 
vals are  made  even  by  the  regular  mail  steam-ships,  but  it  is  for  an  un- 
foreseen and  unpreventable  cause.  Now  take  the  case  of  an  exporter 
in  this  country  who  has  to  deliver  a  line  of  goods  within  a  specified 
time.  He  ships  his  goods  upon  the  faith  of  the  "  tramp"  advertise- 
ment that  shows  that  ample  time  is  left  for  his  shipment  to  be  deliv- 
ered. Perhaps  the  merchant  owner  of  that  tramp  wants  that  order, 
and  knows  the  conditions  of  delivery  in  the  sale.  He  can  have  that 
order  canceled  by  nondelivery  within  the  limit,  and  he  then  steps  in. 
I  can  multiply  case  after  case  to  show  the  harm,  unfairness,  injustice, 
and  wrong  these  foreign  merchant-owned  ships  do,  not  only,  to  regu- 
larly-organized American  mail  steam-ship  companies,  but  to  our  own 
merchant  citizens. 

INSPECTION   OF  AMERICAN  SHIPS. 

Now  let  us  take  the  other  phase  of  this  question  as  it  affects  the  regu- 
lar American  mail  steam-ship  company.  1  want  to  emphatically  state 
that  1  have  no  desire  to  be  understood  as  complaining  of  our  inspection 
and  other  laws  relating  to  American  steam-ships.  They  are  just  and 
proper,  and  are  a  guaranty  to  the  public  that  these  ships  are  seawor- 
thy, of  the  competency  of  their  officers,  either  on  deck  or  in  the  engine- 
room,  and  that  the  hulls,  boilers,  engines,  equipments,  fire  and  life- 
saving  apparatus  are  all  in  good  order  as  shown  by  actually  made  tests 
and  inspection  by  experts  at  stated  periods.  Our  captains  and  officers, 
whether  deck  or  engineer,  have  to  undergo  a  rigid  examination  after 
producing  proofs  of  their  i^revious  service  and  moral  character.  Boilers 
are  tested  by  hydrostatic  pressure  far  beyond  their  allowed  steam  press- 
ure. The  very  fire-hose  is  subjected  to  the  requisite  test,  so  that  when 
a  fire  does  take  place  they  know  the  fire-hose  can  stand  the  proper 
pressure  for  its  extinguishment.  The  life-boats  are  carefully  examined ; 
every  life-preserver  (and  there  must  be  one  for  each  person  the  ship  is 
allowed  to  carry)  is  severally  examined,  and  if  a  tie  strap  is  out  of 
place  that  must  be  put  on.  All  this  is  proper,  just,  and  fair.  In  the 
intervals  of  the  stated  periods  of  inspection,  if  the  American  steam- 
ships have  sustained-  damage  of  any  kind,  written  notice  must  be  sent 
(under  penalty  if  not  sent)  detailing  said  damage,  from  whatever  cause. 
United  States  inspectors  are  sent  immediately  to  the  ship,  a  survey  held, 
and  repairs  ordered,  and  this  is  done  under  their  surveillance  quite 


206         TRADE  AND  TRANSPORTATION  BETWEEN 

independent  of  what  nuderwriter  or  ship's  surveyor  or  expert  may 
wish  to  do.  All  this  is  right,  proper,  and  just ;  this  is  ])rotection  to  the 
passenger,  crew,  shipper,  underwriters,  and  the  public,  and  I  have  yet 
to  hear  of  any  reputable  American  objecting  to  these  laws. 

CONDITION    OF   THE   COASTWISE   TRAFFIC. 

1  have  thought  it  best  to  make  this  long  primary  explanation  and  ask 
comparison  between  governing  conditions  extant  between  the  Ameri- 
can mail  steamer  and  the  foreign  "tramp"  as  to  the  ecpialilyof  terms 
upon  which  they  compete.  The  American  mail  steamship  lias  to  sufler 
from  the  laxity  of  our  laws  that  permit  a  state  of  things  to  exist  that  has 
o[)eratcd  and  is  now  operating  against  our  own  tax-paying  citizens. 
And  (in  parentheses)  I  would  like  to  ask  wherein  lies  the  ditference  be- 
tween the  fully  protected  coastwise  ship  and  the  American  foreign-going 
ships "?  Both  are  equal  under  the  law.  Now  the  American  mail  steam- 
ship company  (take  this  company  if  you  will)  makes  out  a  sailing  sched- 
ule six  months  ahead,  giving  dates  of  departures  and  arrivals  at  the 
various  ])orts  embraced  in  their  system,  and,  full  or  not  full,  the  ships 
sail  upon  those  dates.  Faith  is  kept  with  the  public,  and,  above  all,  no 
discrimination  whatever  is  made,  or  ever  has  been  made,  in  rates  of 
freight ;  each  shipper  stands  equal,  no  matter  who  he  is,  and  can  com- 
pete for  business  on  equal  terms  with  his  neighbor.  To  exemplify  this 
a  classified  tariff  is  published  and  circulated. 

Now  suppose  (as  in  a  few  instances  did  occur)  cargo  engagements  are 
made  up  to  a  certain  point,  and  it  is  found  by  cable  <]uotation  at  this 
time  that  the  principal  article  of  export  has  fallen  in  value ;  a  reduction 
in  rate  must  be  made  to  leave  a  margin  to  the  shipper ;  if  it  is  done  for 
this  last  shipper,  then  cverv  other  shipper  of  the  same  article  is  at  once 
notified  of  the  reduction  and  his  previously  agreed  upon  rate  reduced 
equally  with  the  last  shipper  alluded  to  and  all  stand  equal.  This  is 
our  rule  and  invariable  practice.  Further,  no  matter  who  it  is,  no  one 
shipper,  or  any  one  else,  will  get  the  slightest  infbrination  as  to  what 
class  of  goods  or  quantity  anyone  else  is  shipping;  the  questioner  must 
get  this  information  from  the  public  documents  at  the  customs  after  the 
ship  has  cleared.  Again,  this  company,  and  all  American  steam-ship 
companies,  sell  transportation  pure  and  simide,  an<l  not  one  of  its  offi- 
cers or  employes  is  allowed  to  trade.  It  is  one  of  the  fundamental  rules 
of  this  company.  Please  understand,  no  nuuit  is  claimed  for  this  action, 
it  being  the  only  fair  and  proper  manner  of  honorably  conducting  this 
business,  but  when  this  action  honestly  carried  out  gives  these  mer- 
chant foreign-owned  "tramps"  an  opportunity  to  unfairly  compete,  I 
think  fair  to  draw  the  comparison. 

THE  AMOUNT  OF  COMPETITION  FROM  TRAMPS. 

To  answer  your  query  of  the  class  and  character  of  the  competition 
from  tramps,  I  have  tried  to  answer  the  part  of  your  query  so  far  »^ 


THE    UNITED    STATES    AND    LATIN    AMEiilCA.  207 

New  York  aiid  the  United  States  is  concerned,  and  will  endeavor  to  an- 
swer balance  of  qnery  in  reference  to  Europe.  As  you  are  no  doubt 
fully  aware,  the  Austrian-Hungarian  flour  enters,  or  did  enter,  seri- 
ously into  competition  with  our  j^roducts,  and  there  is  no  doubt  that 
the  quality  of  that  flour  approaches,  if  not  in  some  instances  excels, 
our  own  flour.  (You  will  please  understand  that  flour  must  be  specially 
milled  for  Brazilian  markets  to  overcome  the  climatic  changes  in  trans- 
portation and  subsequent  domicile  it  is  subjected  to.)  Again,  the  low 
price  of  labor  in  Austria-Hungary  enables  the  Austrian  merchant  at 
Trieste  (Adriatic  Sea)  to  bring  to  tide  water  his  flour  more  cheaply ; 
cheaper  at  one  time  than  we  could;  but  our  millers  soon  by  their  in- 
genuity, inventive  faculties,  and  enteri)rise,  coupled  with  our  magnifi- 
cent railway  system,  enabled  our  own  citizens  to  whip  the  Austrian. 
But  right  here  came  in  the  statesmanship  of  the  European  legislators, 
and  they  subsidized  mail  steamers.  In  other  words,  they  taxed  the 
-whole  nation  to  open  and  keep  open  communication  with  a  market  they 
hitherto  held.  "Why?  By  so  doing  the  whole  nation  was  benefited. 
Which,  by  the  way,  answers  an  oft  repeated  solecism  made  by  a  portion 
of  our  newspapers  in  writing  of  mail  pay  "taxing  the  whole  nation  for 
the  benefit  of  a  few,"  and  right  here  competition  comes  in.  This  mail 
nay  enables  European  steam-ships  to  lower  their  freight,  and  they  do 
sa  lower  it  to  meet  American  competitors.  It  is  a  fact  that  up  to  the 
time  this  company  commenced  running  that  over  50  per  cent,  of  the 
flour  consumed  in  Brazil  was  Austrian  flour.  Now  at  this  date  there 
is  only  one  port  (Pernambuco)  to  which  Austrian  flour  is  exported.  I 
make  the  statement  that  this  company  has  been  the  principal  means  of 
securing  this  result  to  our  citizens,  and  by  which  nearly  the  whole 
Union  is  more  or  less  benefited  5  but  this  result  has  been  attained  at 
the  expense  of  the  stockholders  of  this  company,  who  are  demanding, 
and  justly,  too,  that  justice  be  done  to  our  mercantile  marine. 

EUROPEAN  COMPETITION. 

You  ask  also  as  to  competition  from  regular  lines  of  American  or  foreign 
ships.  As  to  the  American  lines,  it  would  be  fair,  because  all  the  condi- 
tions would  be  equal,  and  it  would  simply  be  a  question  as  to  which  man- 
aged better  and  served  the  public  better  that  would  secure  payingpat- 
rouage.  We  have  also  European  competition  derived  from  merchant 
"  tramp"  owners,  of  the  same  ships  that  are  comijeting  here.  Their  great 
object  is  to  flood  Brazilian  markets  with  European  manufactures.  When 
this  company  was  first  inaugurated,  a  threat  was  made  by  their  repre- 
sentatives in  a  port  in  Brazil  that  they  would  flood  that  port  with  their 
country's  manufactures  if  they  did  not  stop  importing  from  the  United 
States,  or  by  any  other  ships  than  theirs.  Again,  take  an  instance  that 
occurred  here  a  very  short  time  ago,  where  a  cable  order  from  Europe 
was  sent  to  load  one  of  their  ships  with  a  certain  class  of  large-sized 
timber.    This  nearly  filled  the  "  tramp,"  but  they  advertised  the  ship 


208         TRADE  AND  rRANSPORTATION  BETWEEN 

as  being  on  the  berth  for  freight.  They  could  take  but  little  of  any  one's 
else  but  their  own.  In  point  of  fact,  these  ships  are  run  just  to  suit  the 
individual  interests  of  that  particular  tirm.  And  so  it  is  with  the  others 
also.  Suppose  under  the  faith  of  that  particular  advertisement  a  mer- 
chant bought  a  large  consignment  of  goods,  relying  upon  that  adver- 
tisement of  sailing,  published  before  her  arrival  here,  and  finds  that 
the  owners  have  filled  her  with  their  own  goods.  It  requires  no  exten- 
sive stretch  of  imagination  to  arrive  at  just  such  a  case.  He  is  placed 
in  a  peculiar  predicament  by  this  want  of  faith  and  unfair  dealing  on 
the  part  of  these  foreign-owned  "  tramps." 

THE  ENGLISH-BELGIAN   LINE. 

There  is  a  line  of  steamers  owned  in  Liverpool  subsidized  by  the 
British  Government.  The  same  owners  place  some  of  their  ships  under 
the  Belgian  flag,  which  that  government  also  subsidizes  for  mail  serv- 
ice. These  vessels  leave  Europe  with  their  own  manufactures  and  sail 
for  River  Platte  principally  and  certain  ports  in  Brazil.  Then  they  un- 
load and  proceed  to  the  coffee  ports  and  load  for  ports  in  the  United 
States.  By  the  receipt  of  mail  pay  they  are  enabled  to  cut  under  current 
rates  of  freight  and  do  so.  This  particular  company  is  notorious  for  its 
discrimination  in  rates ;  in  one  instance  a  25  per  cent,  reduction  was 
made  lo  one  coffee  firm  in  this  very  city.  These  ships  discharge  here, 
then  load  up  for  England  or  Belgium  and  take  cargo  for  southern  ports 
in  Brazil  and  River  Platte  via  Europe  by  this  triangular  route.  They 
thus  succeed  in  doing  our  mercantile  marine  great  harm.  It  is  a  fairly 
equipped  line  and  carries  passengers  on  some  of  the  ships,  consequently 
must  have  English  Board  of  Trade  certificates.  To  induce  shippers  to 
ship  by  this  roundabout  route  to  River  Platte  or  Brazil,  they  reduce 
their  rates. 

In  concluding  my  reply  to  this  part  of  your  queries,  I  do  not  think 
I  ever  regretted  more  my  inability  to  do  full  justice  to.  this  most  impor- 
tant subject,  and  I  am  afraid  that  my  crude  remarks  will  not  have  the 
weight  they  ought  to  have,  and  which  this  very  important  subject  de- 
mands. I  am  fully  conversant  with  the  subject  and  could  recite  page 
after  page  in  fortification  of  the  argument  assumed  in  answering  your 
queries. 

EUROPEAN  VERSUS  AMERICAN   GOVERNMENT  AID. 

I  now  pass  to  the  fourth  query  :  "What  European  steamers  visit  the 
same  ports  and  what  assistance  do  such  steamers  receive  from  the  gov- 
ernments under  whose  flags  they. sail?"  "What  compensation  have 
you  received  annually  fi  om  the  United  States  for  the  transportation  of 
mails  or  otherwise  during''  the  last  ten  years  and  under  what  conditions 
is  it  paid  ?"  The  steame.  s  that  visit  Brazil  are  those  of  the  Royal  Mail 
Steam-Packet  Ships,  sailing  every  IGth  and  30tli  of  each  month  from 
Southampton  and  calling  at  Pernambuco,  Maceio,Bahia,  Rio  de  Janeiro, 


THE    UNITED    STATES    AND    LA'ITX    AMERICA.  209 

Santos,  Brazil;  Montevideo,  Buenos  Ayres;  and  Eosario,  in  the  Argen- 
tine Republic. 

The  Pacific  Steam  ITavigation  Company's  steamers  leave  Liverpool 
about  the  6th  or  7th,  20th  or  23d  of  each  month  for  Bahia,  Rio  de  Ja- 
neiro, Brazil,  and  River  Platte  ports,  en  route  to  west  coast  of  South 
America  via  Straits  of  Magellan.  Tlie  steamers  of  the  Massagerie's  Mar- 
itimes  Company  (French)  leave  a  French  port  on  the  11th  and  25th  of 
each  month,  calling  at  Bahia,  Rio  de  Janeiro,  and  all  River  Platte  ports. 
In  addition  to  the  above,  there  are  Italian,  German,  and  Belgian  steam- 
ships (all  subsidized)  sailing  on  different  dates  in  each  month,  and  there 
is  also  the  Triangular  route  of  steam  ships  (Lamport  and  Holt)  alluded 
to  in  latter  portion  of  answer  to  third  query.  This  company's  legal  title 
is  the  Liverpool,  Brazil,  and  River  Platte  Steam  Navigation  Company, 
limited.  This  company  (Triangular  route)  run  almost  weekly,  and  have 
over  forty  steam-ships,  several  under  the  Belgian  flag,  which  are  subsi- 
dized by  the  English  and  Belgian  Governments  as  mail  ships.  There 
are  other  English,  French,  and  Italian  lines  that  ply  on  the  same  route, 
but  whose  sailing  schedules  or  data  I  have  been  unable  to  procure. 

ENGLISH  MAIL  PACKET  SERVICE. 

I  am  totally  unable  to  give  you  from  official  documents  the  amount 
paid  as  mail  pay  to  the  Italian,  German,  and  Belgian  mail  steamers  by 
their  respective  Governments.  But  herewith  I  hand  you  as  an  ap- 
pendix to  this  query  an  extract  transcript  from  the  "  Blue  Book,"  con- 
taining the  "  Thirty -fourth  Report  of  the  (British)  Postmaster- General 
for  1888,"  "  presented  to  both  houses  of  Parliament  by  command  of  Her 
Majesty."  (Appendix  G,  pages  28  and  29.)  You  will  there  see  the  actual 
amounts  paid  by  the  British  Government  for  all  of  what  they  call  their 
Mail  Packet  Service.  The  total  amount  paid  by  the  British  Govern- 
ment for  mail  pay  on  lines  in  competition  with  our  own  is  £109,653, 
equal  to  $531,817.05.  Now  please  understand  that  this  amount  only 
represents  what  is  paid  by  one  Government  (the  British),  and  please 
further  note  that  the  Exhibit  B  is  a  copy  of  a  document  that  was  made 
out  by  the  writer  at  the  request  and  for  H.  K.  Thurber,  esq.,  the  prin- 
cipal object  being  to  refute  by  true  public  documentary  evidence  an 
article  that  appeared  in  the  New  York  Evening  Post,  where  a  statement 
was  made  that  tliey  had  received  from  the  British  treasury  [sic]  by 
letter  the  statement  it  had  published.  Now,  the  merest  tyro  is  aware 
that  the  "  treasury"  was  not  the  department  to  apply  to  for  the  infor- 
mation sought,  and  this  part  of  the  article  was  just  as  true  as  the  balance 
of  their  garbled  article.  Besides  the  postal  pay  included  in  the  Exhibit 
B,  you  will  find  also  the  payments  to  certain  steam-ships  made  by  the 
British  Admiralty  "  or  a  subvention  of  merchant  steamers  for  state  pur- 
poses" by  that  body  and  extracts  from  the  United  States  superintend- 
ent of  foreign  mails  (June  30,  1888,  page  6)  showing  the  amounts  paid 
foreign  steamers  for  mail  pay  and  also  to  American  steamers.  Although 
S.  Ex.  54 14 


210  TRADE    AND    TRANSPORTATION    BETWEEN 

tiie  whole  of  tliis  exhibit  is  not  in  accord  with  your  question,  I  hantly 
see  how  I  can  dl.siutegrate  the  same,  aud  therefore  forward  it  iu  its  en- 
tirety for  you  to  deal  with  as  you  deem  best. 

THE   SPANISH   SUBSIDIES. 

Finally,  to  conclude  this  part  of  your  fourth  query,  I  forward  you  a 
little  pamphlet  marked  Exhibit  B,  entitled  "  You  are  interested,"  issued 
by  Mr.  H.  K.  Thurber,  that  contains  the  whole  of  the  mail  pay  paid  by 
the  Spanish  Government.  This  "subsidy"  law  passed  the  Spanish 
Cortes  November  1,  1886,  and  the  contract  was  signed  November  18, 
1886.  This  law  was  passed  by  the  Spanish  Cortes  with. hardly  a  dis- 
sentient voice.  It  allows  their  Spanish  steamships  10  to  18  pesetas  per 
mile  (the  pesetas  being  worth  19^  cents),  or  $1.95  per  nautical  mile.  I 
ask  3'our  attention  to  the  report  contained  iu  the  pamphlet  and  Mr. 
Thurber's  remarks,  and  please  allow  me  to  ask,  does  it  not  speak 
trumpet-tongued  ?  This  matter  was  kept  very  quiet  in  Spain  until  they 
ascertained  that  the  then  United  States  Congress  would  do  nothing  for 
the  relief  of  our  mercantile  marine,  especially  after  a  repoi  t  made  by 
the  then  chairman  of  the  Committee  on  Commerce,  a  gentleman  from 
Arkansas  (save  the  mark),  who,  from  the  locality  he  came  from,  must 
have  had  a  very  great  knowledge  of  maritime  affairs,  which  I  presume 
was  the  reason  he  was  selected  for  that  office  by  Speaker  Carlisle. 

COMPENSATION  FOR  CARRYING  UNITED   STATES  MAILS. 

If  you  will  recollect,  the  compulsory  law  compelling  United  States 
ships  to  carry  United  States  mails  was  repealed,  and  an  act  dated 
March  3,  1885,  was  passed,  authorizing  the  Postmaster  General  to  call 
for  bids  for  United  States  mails,  not  to  exceed  50  cents  per  nautical 
mile,  making  an  appropriation  of  $400,000.  Steam-ships  were  invited 
to  give  all  the  information  respecting  their  routes,  etc.  All  this  was 
done  and  many  interviews  held,  but  previous  to  this  the  Postal  Depart- 
ment issued  a  letter  dated  March  21,  18S5  (see  page  102  of  Postmaster- 
General's  Report  for  1885).  In  that  letter  the  Postmaster-General  asked 
for  time  (a  proper  request),  but  if  you  will  follow  the  letter  to  the  fif- 
teenth line  you  will  see  that  it  states  as  follows :  "  The  arrangement 
contemplated  by  the  act  of  March  will  have  been  completed."  Does 
not  that  show  conclusively  that  the  then  Postmaster-General  fully  in- 
tended to  carry  out  the  laws  1  And  I  think  you  will  find  very  few  i)ar- 
allel  cases  to  this,  where  a  merely  executive  oflicial  did  (or  could)  defy 
the  will  of  Congress,  as  exemplified  in  the  action  of  the  Postmaster 
General  at  that  time. 

WHAT  THE  BRAZIL  STEAMERS  RECEIVE. 

Upon  the  arrival,  shortly  after  March  21,  of  some  of  the  prominent 
members  of  Congress  of  the  same  party  as  the  administration  a  decided 
revulsion  of  feeling  took  place  in  this  matter,  so  far  as  the  Postmaster- 


THE    UNITED    STATES    AND    LATIN    AMERICA.  211 

General  was  concerned,  aiul  he  certainly  displayed  great  adroitness  in 
slipping  out  and  taking  an  entirely  opposite  view,  and,  to  make  a  long 
stor^'  short,  refused  to  carry  out  the  above  law.  The  time  that  had  been 
asked  for  exi)ired  June  30;  up  to  that  time  (June  30)  this  company,  as 
it  had  promised,  accepted  the  amount  tendered  by  the  Postal  Depart- 
ment under  the  old  law  as  follows:  For  voyage  of  5,200  miles,  calling 
and  delivering  mails  at  seven  ports,  two  voyages  of  steam-ship  ArZi;ance 
21-22  and  23-24,  $273.77  each  voyage ;  total  for  Advance,  $547.54 ;  for 
steam-ship  Finance,  voyage  23-24,  $273.77;  for  steam-ship  MerrimoG 
voyage  5-6,  $273.78 ;  a  total  payment  of  $1,095.09,  for  a  total  distance 
of  20,800  nautical  miles  traveled  and  delivering  United  States  mails  at 
twenty-eight  ports.  1  think  this  recital  carries  its  own  comments,  and 
the  unqualified  statement  is  made  by  the  writer  that  it  cost  this  com- 
pany just  twice  as  much  to  handle  these  mails  as  we  received.  Much 
discussion  ensued  between  all  the  steam-ship  companies  and  the  Post- 
master General. 

THE  CONTROVERSY   WITH  POSTMASTER-GENERAL  VILAS. 

The  companies  came  to  a  quasi  agreement  amongst  themselves  not 
to  carry  the  mails  unless  fairly  compensated  upon  a  mileage  basis.  I 
refer  you  to  the  Postmaster-General's  report  for  1885,  wherein  you  will 
see  that  that  astute  legal  gentleman  gradually  wriggles  away  from  his 
letter  of  March  21  and  assumes  an  entirely  different  attitude.  The 
Postmaster-General  also  accused  the  mercantile  steam  marine  of  this 
country  of  "contumacy"  for  presuming  to  do  what  they  pleased  with 
their  own  private  property.  On  July  27,  1885,  we  received  a  tele- 
graphic dispatch  (see  page  140,  Postmaster-General's  report  for  1885). 
Our  reply  is  on  page  141,  signed  by  company's  agent  for  us  (P.  F.  Ger- 
hard &  Co.),  wherein  we  state,  "  Put  our  steamers  on  August  schedule 
if  you  are  prepared  to  pay  adequate  compensation."  The  Department 
did  put  our  steamers  on  the  August  and  all  schedules  ever  since,  and 
regularly  ever  since  have  tendered  us  the  quarterly  recognitions  giving 
sea  and  inland  postage,  which  have  been  consistently  and  regularly  re- 
turned as  being  inadequate  for  the  service  rendered.  We  are  perfectly 
aware  that  until  the  law  is  complied  with  and  competitive  bids  called 
^or  by  the  Postmaster- General  in  1885,  that  this  action  rendered  the 
law  of  March  3,  1885,  inoperative,  and  we  are  perfectly  aware  that  no 
other  resource  is  left  until  legislation  is  had  upon  this  subject  that  the 
old  law  of  1858  must  be  acted  under.  But  we  are  also  aware  of  its 
gross  injustice,  and  reserve  our  right  to  claim  adequate  compensation 
from  Congress  for  work  duly  and  faithfully  performed  for  the  United 
States. 

HOW  MAILS  ARE   HANDLED. 

Now  it  would  cause  the  shipper  and  general  public  untold  inconven- 
ience if  we  had  refused  (the  law  being  Jio  longer  compulsory)  to  trans- 
port United  States  mails  to  Windward  Islands  and  Brazil.    It  was 


212  TRADE    AND    TRANSPORTATION    BETWEEN 

because  of  the  sentiment  and  feeling  among  our  public  men  and  the 
respectable  press  of  the  country,  that  simple  justice  would  be  accorded 
to  us,  that  we  decided  to  carry  the  mails.  We  have  hitherto  been  treated 
as  marine  pariahs,  without  honor  or  truth,  called  "  subsidy  grabbers," 
etc.  This  mud  slinging  has  helped  in  a  great  measure  to  deter  our  citi- 
zens from  investing  in  the  foreign  steam  marine  of  our  country,  which, 
I  am  thankful  to  say,  is  rai)idly  passing  away,  and  the  two  hundred  trades 
represented  in  steam-ship  building,  together  with  the  morale  of  the  mer- 
cantile marine  of  our  country,  have  conjointly  aroused  their  energies 
and  have  compelled  recognition  of  their  just  rights.  Postmaster-General 
Vilas  termed  United  States  mails  "  inanimate  freight."  All  cargo  is 
inanimate  except  live  stock,  and  upon  that  account  we  could  "  put  mails 
in  a  dark  room."  As  a  matter  of  fact,  we  have  two  heavy  zinc  lined 
rooms  properly  filled  with  ventilators  to  keep  seals  from  melting,  and 
double  locked.  On  the  main  deck  one  room  is  for  the  regular  mails ;  the 
other,  that  is  made  still  more  secure,  for  the  registered  mails.  This  fact 
has  become  known  to  our  bankers,  etc.,  and  the  carriage  of  "  valuable 
packages,"  on  which  this  company  formerly  derived  a  revenue,  is  now 
done  by  the  Post-OflBce,  for  which  they  receive  the  usual  fees,  but  for 
which  no  recognition  has  ever  yet  been  made.' 

THE   PROMISES   OF   PRESIDENT   HARRISON. 

In  point  of  fact,  the  Government  is  competing  with  the  tax-paying 
citizens — asks  the  latter  to  do  the  work  by  transporting  securely  their 
registered  mails  (for  which  special  receipt  is  taken)  and  retains  the  fees. 
Please  bear  in  mind  that  at  no  time  have  the  registration  fees  ever  been 
even  mentioned  in  any  recognition  sent  to  this  company.  But  allow 
me  to  state  that  the  mercantile  marine  of  this  country  have  now  the 
opening  of  a  bright  dawn,  the  first  rift  in  the  clouds  being  seen  in  the 
letter  of  acceptance  of  the  nomination  for  the  high  office  of  President 
by  Benjamin  Harrison.  There  is  no  equivocation  in  that  letter,  no 
double  construction  could  be  put  upon  its  contents.  It  gave  us  renewed 
hope  that  at  last  our  mercantile  marine  would  receive  justice  and  this 
native  industry  would  receive  its  just  recognition  and  that  we  were 
equal  with  our  fellow-citizens  under  the  law.  All  honor  to  Mr.  Harrison 
that  he  had  the  courage  of  his  convictions  and  the  still  greater  courage 
to  express  them  in  such  a  conspicuous  manner.  There  was  no  prevari- 
cation before  a  vote  was  cast  for  him  ;  the  whole  of  our  country  knew 
his  sentiments  on  this  and  all  other  vital  questions.  What  is  the  con- 
sequence ?  There  is  not  an  iron-ship  yard  to-day  that  is  not  full  of 
work  and  other  yards  are  springing  into  existence.  It  will  not  be  long 
before  we  are  abreast,  in  cost,  with  European  builders,  even  if  our  labor 
does  cost  more. 

COMPENSATION  THE  BRAZIL  COMPANY  HAS  REFUSED. 

Fifth  query :  "  How  much  greater  would  your  present  compensation 
have  been  under  the  old  law,  before  the  Postal  Union  under  which  for- 


THE   UNITED    STATES   AND    LATIN    AMERICA.  213 

eign  postage  was  fixed  at  an  uniform  rate,  regardless  of  the  distance  a 
letter  is  carried  ?  It  is  assumed  that  when  the  rates  of  foreign  postage 
were  reduced  the  intention  was  to  benefit  the  people,  not  at  the  ex- 
pense of  the  steam-ship  companies,  but  at  the  expense  of  the  Govern- 
ment." 

It  seems  to  the  writer  that  your  assumption  attached  to  this  query  is 
very  tersely  and  concisely  answered,  and  is  the  gist  of  your  query. 
But  as  you  put  the  question,  I  will  endeavor  to  answer  it  as  best  I  can. 
The  postage  for  a  letter  to  Brazil  under  the  old  law  was  25  cents  ;  now, 
under  the  Berne  Postal  Convention,  it  is  5  cents,  or  in  other  words  a  de- 
crease of  80  per  cent.  We  have  been  tendered,  as  detailed  above,  and 
refused  acceptance,  from  June  30,  1885,  to  June  30, 1889,  four  years,  a 
total  sum  of  $43,117.06.    This  sum  was  divided  by  years  as  follows : 

First  year,  from  June  30,  1885,  to  June,  1886,  three  steam-ships,  sixteen 
voyages,  82,200  miles  outward $6, 592. 24 

Second  year,  Juno  30,  1885,  to  June  30,  1887,  three  steam-ships,  nine  ports 
of  call.  (Note. — Ships  proceed  now  to  Santos  and  call  at  Martinique, 
distance  89,600  miles  outward)- 10,069.08 

Third  year,  June  30,  1887,  to  June  30,  1888,  sixteen  voyages,  nine  ports  of 
call,  89,600  miles  outward 11,733.44 

Fourth  year,  June  30,  1888,  to  June  30,  1889,  sixteen  voyages,  nine  ports  of 
call,  89,600  miles  outward 13,722.90 

Total 43,117.00 

Or,  in  other  words,  three  steam-ships  receive  this  sum  for  transport- 
ing United  States  mails  352,000  nautical  miles  (without  the  loss  of  a 
single  letter),  calling  thirty-four  times  outward  (and  homeward,  too)  at 
ports  described  above.  Without  deducting  what  it  costs  this  company 
to  handle  United  States  mails,  the  amount  is  2|  cents  per  mile,  but 
after  deducting  that  sum  the  residue  does  not  pay  what  it  has  already 
cost.  ' 

AMOUNT   THE   LINE   WOULD   HAVE   RECEIVED   UNDER   THE   OLD   LAW. 

If  the  law  stood  the  same  as  before  the  Berue  Postal  Convention  we 
would  have  received  $215,586.80,  or,  per  mile,  61^  cents.  In  other 
words,  for  the  whole  country  to  enjoy  an  uniform  cheap  postage,  the 
steam-ship  lines  which  actually  do  the  work  have  to  bear  the  brunt  of 
this  reduction.  By  what  right  does  any  Government  appropriate  pri- 
vate conveyances  for  public  uses  without  their  consent  in  this  arbitrary 
way,  unless  in  a  public  emergency  ?  When  I  say  "  without  consent" 
I,  of  course,  mean  as  to  the  private  individual  having  not  a  word  to 
say  as  to  compensation.  We  make  a  tariff  for  freight  and  passage ; 
the  shii)per  and  passenger  see  the  same,  and,  if  they  wish,  pay  what  is 
asked.  As  it  is  in  all  businesses,  a  price  is  named,  and  if  agreed  upon, 
paid  ;'  it  is  a  mutual  bargain.  Of  course,  to  get  the  lowest  price,  a  call 
for  bids  in  open  market  would  be  requisite.     Having  heard  you  speak 


214  TRADE    AND    TRANSPORTATION    BETWEEN 

publicly  and  knowing  your  sentiments  upon  these  vital  questions,  it 
seems  superfluous  in  me  to  comment  further;  but  I  would  like  to  ask, 
"Is  there  any  parallel  of  injustice  anywhere  extant?" 

ADVANTAGES  OF  COAST  AND  INLAND  STEAMERS. 

Sixth  query.  "  What  advantages  do  steam-ships  employed  upon  coast 
and  inland  waters  enjoy  over  you  in  mail  contracts  and  other  respects?" 
In  a  speech  delivered  by  you  at  the  Spanish- American  Commercial  Union 
Dinner  in  the  Brunswick  Hotel  in  this  city  on  May  1  last,  I  do  not 
think  a  better  answer  (in  the  writer's  judgment)  to  this  question  could 
l»ossibly  be  given.  We  have  taken  the  liberty  to  print  this  speech,  and 
I  have  taken  also  the  liberty  of  putting  same  in  as  part  of  this  answer, 
and  mark  same  as  Exhibit  C,  and  can  only  add  to  what  you  have  tersely 
and  ably  stated — showing  such  a  thorough  knowledge  of  the  subject — 
a  few  remarks.  A  contract  must  be  entered  into  with  any  steam-ship 
or  other  craft  engaged  in  coastal  or  inland  waters.  The  mails  are  sent 
alongside  and  taken  from  their  vessels  at  the  cost  of  the  Government, 
in  addition  to  the  contract  carrying  price,  unless  the  vessels  lie  within 
a  specified  number  of  rods  of  the  post-ofiBce.  A  foreign-going  American 
steam-ship  must  send  for  and  deliver  all  foreign  mails  at  its  own  cost. 
For  the  life  of  me  I  never  could  discover  why  this  is  done,  and  where 
the  difference  exists  between  the  coastwise  ship  and  the  foreign  going 
ship.    They  are  equally  citizens  under  the  law. 

I  believe  this  discrimination  was  caused  by  some  action  of  the  late 
Commodore  Vanderbilt  in  a  controversy  had  with  the  Government  jn 
reference  to  mails  ;  and,  judging  by  the  traditional  history  of  this  mat- 
ter, it  showed  a  very  petty  spirit  to  continue  it.  This  law  has  been  kept 
on  our  statute-books,  which  in  its  unfair  discrimination  is  a  historical 
disgrace.  Punishing  "  the  children  for  the  sins  of  their  fathers  unto  the 
third  generation." 

COST   AND   PROFIT   OF   HANDLING  MAILS. 

Seventh  query.  "  What  expenses  are  you  subjected  to  in  receiving 
and  delivering  the  mails;  and  after  deducting  this  amount  from  your 
gross  receipts  from  the  Posfc-Office  Department,  what  is  your  net  com- 
pensation, both  annually,  per  voyage  and  per  mile?" 

This  question  has  been  partially  answered  in  reply  to  query  fifth,  and 
under  the  su[)position  that  we  had  accepted  the  amounts  tendered  by 
the  Post-Office  Department  quarterly.  1  can  only  give  you  the  actual 
cash  outlay  that  is  incurred  and  paid  by  this  company,  taken  from  the 
books  and  vouchers  of  this  comj)any,  and  herewith  show  the  cost  of 
handling  United  States  mails,  and  think  it  better  to  give  you  a  detailed 
statement  that  will  show  on  its  face  the  actual  items: 

Newport  News,  Va.  : 

Use  of  eiigiuc  and  flat  car  to  trauHfer  rnaila  from  Pier  2  to  I        $5.00 

Use  of  tug-boat  in  winter  (5  nio.s. ),  $100,  or  per  trip 8.00 

Deteotiou,  say  7  Lours  on  aver  age,  at  $2',iJ>2  per  hoar 1G4.  G4 

■   '       $177. 64 


THE    UI^ITFJ)    STATES    AND    LATIN.  AMERICA.  215 

St.  Thomas,  D.  W.  I. : 

Boat  hire  and  porterage $12.00 

Barbadoes  : 

Boat  hire  aud  porterage 1 6. 00 

Para,  Brazil 

Steam-launch R40,000 

Purser  and  one  man  in  charge  of  mail 40, 000 

Porterage .'. 30,000 

at  55  110,000    =      60.50 
Maranhao,  Brazil :  « 

Landing  mails  aud  porterage 20,000 

Use  of  tug-boat  part  of  time,  average  per  trip 60, 000 

80,  000     =      44. 00 
Peruambuco,  Brazil : 

Boat  hire 32,000 

Porterage,    15,000 

Purser  aud  one  man  in  charge  of  mail 30, 000 

77,000    =:      42.35 

Bahia.  Brazil : 

Boat  hire  aud  porterage 72,000    =      39.60 

Rio  de  Janeiro  : 

Steam-lauuch,  46,000 

Porterage  aud  boat  hire 115, 460 

161,460    =      88.80 
Santos,  Brazil: 

Steam-lanuch 23,000 

Porterage 37,730 

Boat  hire 1 20,000 

80,730    =      44.40 
New  York,  U.  S.  A. : 

Cartage  to  post-office $2.50 

One  man  to  post-office 3. 50 

Labor  landing  mails 2.50 

7.00 

Mail  room  : 

Lined  with  iron,  capable  carrying  .520  cubic  feet,  at  35  cents  two 

ways 364.00 

Per  trip,  total «86.29 

Four  years,  sixty- four  ;trips,  at  $886.29 56,  722.  56 

Amount  tendered  l)y  United  States  Post-Office  Department  for  four  years' 
transportation  of  United  States  mails,  ending  June  30,  1889,  but  not 
accepted - 43, 117. 66 

Balance l 13,604.90 

In  other  words,  we  have  i)ni(l  $56,722.56  to  liaudle  United  States  mails, 
and  are  offered  ^but  refused)  $43,117.66  for  that  service. 
I  am  ready  to  make  afiHdavit  to  the  truth  of  this  statement. 

BRAZILIAN  MAIL  CONTRACT. 

Eighth  query.  "  Do  you  receive  compensation  for  mails  carried  or  a 
subsidy  from  any  other  Governments  1    If  so,  what  amount,  under  what 


216  TRADE  ^  AND    TRANSPORTATION    BETWEEN 

conditions,  and  what  concessions,  if  any,  in  respect  to  harbor  dues  do 
you  enjoy  from  foreign  Governments?" 

This  company  have  a  mail  contract  with  the  Brazilian  Government 
for  ten  years  from  November,  1887,  amounting  to  $95,000  per  annum  in 
United  States  currency  for  a  monthly  service,  but  we  make  sixteen 
voyages  under  the  same  conditions,  which  amounts  per  voyage  to 
$5,937. 

The  only  concessions  granted  are  permissions  to  discharge  and  load 
at  once,  night  or  day,  Sundays,  national  or  provincial  holidays,  festas, 
etc.  (but  for  which  we  have  to  pay  extra  compensation  to  customs  oflB- 
cers),  provided  the  ship  arrives  before  sundown  and  in  time  to  receive 
the  health  officer;  if  not,  she  must  wait  without  communication  until 
sunrise  next  day.  We  receive  no  exemption  from  any  public  charges 
or  tax,  national  or  provincial,  our  voyage  payments  for  public  charges 
for  light  dues,  northern  and  southern  hospital  taxes  (Casa  Misoricor- 
dia)  in  each  province,  harbor  and  other  dues.  Customs,  etc.,  amount 
to  $2,346.54  per  round  voyage,  or  per  voyage  $1,173.27.  We  receive 
from  the  Bardados  Colonial  Government  for  United  States  mails  about 
$15  per  voyage,  but  for  mails  to  adjacent  islands  (intermediary)  we  re- 
ceive nothing. 

There  is  hardly  a  voyage  but  what  we  carry  large  United  States  mails 
to  West  Indian  Islands,  Trinidad,  etc.,  other  than  for  the  ports  we 
touch  at,  and  mails  always  for  Uruguay,  Argentine  Republic,  and  for 
Chili  via  Buenos  Ayres,  thence  by  Transandine  Railway  across  Pampas. 

INCREASE  OF  TRADE  WITH  THE  UNITED  STATES. 

Ninth  query.  "What  increase  in  trade  has  there  been  between  the 
United  States  and  the  ports  you  visit  since  your  line  was  established  f '' 

I  do  not  think  I  could  do  better  than  hand  you  a  small  slip  (marked 
Exhibit  D)  called  for  by  the  president  of  this  company  (H.  K. 
Thurber,  esq.)  in  answer  to  the  very  same  question.  This  slip  briefly 
gives  the  percentage  each  year,  and  the  average  of  each  State  in  value 
and  average  percentage,  embracing  twenty-five  States. 

SATISFACTORY   CHANGES   IN  METHODS  OF  BUSINESS. 

Tenth  query.  "Have  there  been  any  changes  in  the  methods  of  com- 
merce? As  I  understand  it,  goods  are  no  longer  sent  upon  consign- 
ment, but  upon  orders." 

There  has  been  an  entire  and  almost  radical  change  in  the  manner  of 
doing  business  since  the  establishment  of  this  regnlar  line,  and  an 
almost  entire  absence  of  speculation.  Orders  for  actual  wants  are  the 
predominant  features,  consequently  a  more  healthy  and  secure  business, 
and  what  is  of  equal  imi)ortance,  a  sure  turning  of  the  trade  to  this 
country,  which  merely  requires  more  frequent  and  regular  communica- 
tion to  secure  the  majority  of  the  trade,  as  each  country  wants  what 
the  other  produces  and  manufactures. 


THE    UNITED    STATES    AND    LATIN    AMERICA.       /  217 

OfiARACTER   OF   CARGOES. 

Eleventh  query.  ''What  is  the  character  of  your  cargoes,  and  where 
are  the  goods  produced  ? 

"  As  it  is  believed  that  the  people  of  the  interior  are  as  much  inter- 
ested in  promoting  steam-ship  communication  as  those  of  the  sea-board 
cities,  it  is  important  to  show  the  source  from  which  the  merchandise 
you  carry  comes,  and  if  you  give  the  States  and  cities  in  which  it  is  pro- 
duced, the  information  will  be  of  great  importance.  Please  furnish 
sample  copies  of  manifests  showing  the  character  of  your  cargoes." 

The  cargoes  exported  in  this  company's  ships,  with  the  exception  of 
only  one  or  two  items,  principally  Canadian  codfish  (under  bond),  are  the 
products  and  manufactures  of  the  United  States.  I  have  sent  certified 
copies  of  manifests  for  your  verification. 

HOW   MAIL    CARRIAGE   SHOULD   BE   PAID  FOR. 

Twelfth  query.  "Is  it  your  opinion  that  steam  ships  should  be  paid 
for  the  distance  sailed  and  not  by  the  weight  and  number  of  letters  car- 
ried ?  If  not,  what  would  be  your  plan  for  the  payment  of  mail  trans- 
portation ?  Is  it  practicable  to  subsidize  steam-ships  upon  the  amount 
of  freight  carried  or  the  tonnage  of  the  vessel  ?  " 

My  opinion  is  that  mails  should  be  paid  for  upon  a  mileage  basis.  Is 
it  fair  to  pay  the  same  (as  now  is  done)  for  mails  from  Portland,  Me., 
to  Halifax,  Canada,  as  from  New  York  to  Santos  (5,600  miles)  *?  Now, 
with  reference  to  weight  of  mails.  The  mails  from  South  America  are 
very  rarely  of  a  social  character,  and,  not  speaking  the  English  language, 
"prints"  are  not  a  large  adjunct  to  the  South  American  mails,  which 
consist  of  a  purely  commercial  character,  orders  for  merchandise, 
invoices,  drafts,  etc.,  consequently  the  intrinsic  value,  bag  for  bag,  from 
the  bulk,  is  of  far  more  importance  commercially  to  this  country  than 
a  transatlantic  mail,  the  gross  bulk  of  which  consists  largely  of  social 
letters  and  prints.  What  I  would  deem  a  fair  method  would  be  pay- 
ment upon  a  mileage  basis,  and  the  consequent  advantage  accruing  to 
the  whole  nation  in  securing  a  new  and  lucrative  market  for  the  suri)lus 
productions  of  our  country. 

I  do  not  think  it  practicable  to  subsidize  upon  a  basis  of  amount  of 
freight,  for  the  reason  that  a  mail  steamer  should  absolutely  insure 
stated  regularity  at  frequent  periods  of  departures  and  arrivals  at  each 
port  called  at  (the  dangers  and  perils  of  the  seas  and  navigation  ex- 
cepted) ;  hence  full  or  not  full  the  ship  should  sail  upon  her  schedule 
date.  The  cargo  already  shipped  on  board,  mayhap  upon  the  faith  of 
schedule,  may  be  cargo  to  be  delivered  within  a  given  date ;  drafts  may 
have  been  accepted  or  paid  upon  which  the  merchant  or  banker  may 
have  predicated,  relying  upon  faith  being  kept  as  to  schedule,  which, 
if  departed  from,  might  involve  bankruptcy  to  firms,  etc.  All  this  is 
against  the  method  of  payment  upon  a  cargo  basis.    The  steam-ship 


218         TRADE  A.ND  TRANSPORTATION  BETWEEN 

company,  if  they  have  auy  knowledge  of  their  business,  will  soon  fill 
up  the  gap  with  extra  tonnage  (short  ships)  to  meet  the  requirements 
of  their  trade. 

LIST   OF   UNITED   STATES-BRAZIL   TRADE   STEAMERS. 

Thirteenth  query  :  "  Can  you  furnish  me  a  list  of  foreign  steamers, 
both  tramps  and  those  belonging  to  regular  lines,  that  are  engaged  in 
the  trade  between  the  United  States  and  Central  and  South  America, 
with  their  size,  tonnage,  nationality  and  ordinary  rates  of  freight,  in 
comparison  to  those  charged  by  the  regularly  established  American 
lines  ?  " 

The  names  of  the  steamers — all  tramps,  every  one  of  them — running  on 
the  Brazilian  coast  from  the  United  States,  and  which  make  this  coun- 
try their  headquarters,  never  going  home  to  their  native  countries  un- 
less for  repairs,  etc.,  where  they  spend  the  earnings  made  by  so  doing, 
are : 

English  ships :  Amazonese,  built  in  1869,  twenty  years  old ;  Maran- 
hense,  built  in  1880,  nine  years  old  ;  Gearense,  built  in  1869,  twenty 
years  old;  from  a  so-called  Ked  Cross  Line  owned  in  Liverpool. 

English  ships :  Ambrose,  built  in  1869,  twenty  years  old ;  Bernard, 
built  in  1870,  nineteen  years  old;  Basil,  built  in  1871,  eighteen  years 
old;  Cyril,  hnilt  in  1882,  seven  years  old;  Augustine,  built  in  1865, 
twenty  four  years  old ;  Jerome,  built  in  1866,  twenty-three  years  old ; 
compose  the  Booth  Line  owned  in  Liverpool. 

German  ships:  ProcMa,  built  in  1871, eighteen  years  old,  been  sent 
home  for  repairs,  was  libeled  here  for  $30,0(i0  for  damage  to  cargo ; 
Catania,  built  in  1881,  nine  years  old  ;  Savona,  built  in  1871,  eighteen 
years  old ;  Capua  (new),  built  in  1889.    This  line  is  owned  in  Hamburg. 

I  desire,  as  emphatically  as  language  can  convey  the  fact,  to  say  that 
the  majority  of  foreign  ships  came  into  this  trade  after  this  company 
had  demonstrated  by  perseverance  and  energy  that  in  time  the  Bra- 
zilian trade  could  be  diverted  to  this  country,  and  this  was  done  at  a 
loss  to  this  company  of  $237,564.98.  This  latter  fact  can  be  verified  by 
this  company's  books. 

Then  these  piratical,  irresponsible  tramps,  obsolete  in  their  own  coun- 
try, came  in  and  are  in  now.  Their  ordinary  rates  of  freight  are  always 
quoted  far  below  current  rates,  otherwise  they  would  not  get  cargo  from 
the  general  public,  except  what  their  owners,  who  are  nearly  all  mer- 
chants or  dealers,  would  supply.  (See  remarks  in  answer  to  third  query, 
applicable  to  this  query.)  These  foreign  crafts,  which  make  their  head- 
quarters in  this  country,  which  do  not  contribute  one  cent,  in  taxes, 
should  be  rated  by  qualified  inspectors  as  to  their  seaworthiness,  and 
made  to  pay  a  tonnage  tax  of  $1  per  ton  ev^ry  time  they  cleared  for 
any  port  other  than  their  own  country  or  colonies.  I  fear  that  inter- 
national treaties  would  prevent  this,  but  there  is  surely  a  way  that  our 
legislators  can  devise  to  help  this  native  industry  by  which  the  whole 
nation  will  be  benefited. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  210 

COST,   CARGOES,   AND  RATES. 


-) 


Fourteenth  query:  "  Where  do  these  'tramp'  steamers  come  from, 
and  how  much  does  it  cose  to  run  one,  compared  with  the  American 
steamer  of  the  same  size  upon  a  regular  line  ?  Please  state  also,  if 
possible,  the  amount  of  American  goods  carried  to  Brazil  by  American 
steamers  within  the  last  few  years,  and  the  amount  carried  by  foreign 
steamers;  also  please  state  the  amount  of  imports  brought  by  the 
United  States. " 

It  would  be  very  difficult  to  give  you  an  estimate  of  the  cost  of  run- 
ning a  "tramp;"  it  lies  a  gieat  deal,  in  the  writer's  estimatiim,  in 
what  the  crews  will  stand  and  do  without,  and  how  long  they  can 
chance  running  the  old  boilers  and  engines  and  stagger  home  for  re- 
pairs. 

The  bulk  of  valuable  cargo  is  always  shipped  by  our  lines.  I  could 
not  give  you  an  estimate  of  the  proportion.  These  "tramps"  are 
loaded,  outside  of  their  owner's  goods,  with  flour  and  lard  principally. 

As  to  rates  asked  for  by  some,  it  is  just  simply  what  they  can  get. 

SHIPS  IN  THE   TRIANGULAR  TRADE. 

Fifteenth  query:  "  How  many  foreign, lines  of  steamers  are  regularly 
engaged  in  the  triangular  trade  from  Europe  to  Brazil,  to  New  York, 
to  Europe  again,  and  how  many  '  tramps?'  What  rates  of  freight  do 
they  charge  compared  with  those  the  Brazilian  line  is  compelled  to 
charge  in  order  to  survive  ?  What  subsidies,  if  any,  do  these  triangular 
line  ships  receive,  and  what  is  the  cost  of  maintaining  them  as  com- 
pared with  that  of  maintaining  American  ships'?" 

Answered,  principally,  in  reply  to  query  third.  There  are  forty-three 
steamers  owned  bj^  a  Liverpool  company  engaged  in  the  triangular 
route  under  the  Belgian  and  English  flags  and  subsidized  by  both  Gov- 
ernments (see  Exhibit  B).  I  am  unable  to  reply  to  the  query  as  to  cost 
of  running  this  triangular  route.  The  British  Government  give  so 
many  aids  to  shipping  and  commerce  to  make  their  burdens  lighter 
that  this  country  does  not  possess,  that  I  find  it  impossible  to  give  a 
competent  answer,  such  as  you  require. 

CONCLUSION. 

In  conclusion  I  desire  to  state  that  my  statements  are  all  facts  de- 
duced from  actual  daily  and  hourly  experience,  and  I  respectfully  desire 
that  no  one  in  this  company  but  the  writer  shall  be  held  res]>onsible  for 
the  various  comments  that  I  have  interpolated  throughout  this  letter. 
You,  no  doubt,  can  see  that  I  feel  strongly  upon  this  matter,  but  how- 
ever imperfectly  the  ideas  may  be  expressed  they  are  none  the  less  true, 
and  knowing  the  intense  interest  you  have  always  taken  and  shown  in 
this  important  subject,  I  venture  to  ask  your  advocacy  on  behalf  of  our 
mercantile  marine.    We  have  just  the  same  grit,  energy,  and  enterprise 


220  TRADE   AND   TRANSPORTATION   BETWEEN 

we  erer  had.  If  Congress  will  bestow  some  attention  to  this  matter, 
you  will  soon  see  the  old  flag  once  more  where  it  once  was — predomi- 
nant on  the  ocean — and  you  will  see  a  naval  reserve  and  a  fleet  of  un- 
armored  cruisers  grow  up  that  will  be  always  ready  when  wanted,  and 
it  will  make  quarrelsome  nations  pause  before  they  venture  giving  an 
insult,  knowing  we  had  the  means  and  men  who  would  quickly  resent  it. 

I  have  not  given  any  data  relating  to  other  lines,  as  I  deem  it  their 
duty  to  present  their  own  case,  as  they  are  more  familiar  with  the  same, 
but  the  principle  involved  applies  in  a  greater  or  lesser  degree  to  all 
Americans  engaged  in  the  foreign  trade.  Our  brothers  on  the  Pacific 
Slope  have  a  subsidized  line  running  to  the  terminus  of  the  Canadian 
Pacific,  that,  in  consequence  of  that  subsidy,  is  eating  the  very  vitals  of 
the  trade  they  worked  so  hard  to  gain  from  the  Orient.  England's 
strategetic  policy  is  rampant  in  her  mercantile  marine  everywhere,  but 
it  is  for  her  own  glory  and  aggrandizement,  and  greatly  at  our  expense 
and  loss.  What  is  the  object  of  the  latter  subsidy  paid  by  England? 
Canada  had  little  trade  with  China  and  Japan.  The  object  is  to  divert 
it  to  herself  and  secure  a  way  to  the  East  in  case  of  war  (in  case  the  Suez 
Canal  and  Red  Sea  are  blockaded),  and  to  get  traffic  for  the  Canadian 
Pacific  Railway,  the  very  existence  of  which  depends  upon  the  trade 
she  wrests  from  us. 

On  subject  more,  as  it  is  not  touched  upon  in  your  letter.  This  com- 
pany at  its  own  ejpeuse  and  at  its  initiation,  sent  samples  of  Georgia 
drills  and  jeans  and  Massachusetts  domestics  to  Brazil ;  they  were 
tested  alongside  Manchester  goods.  Since  that  time  the  exj)ort  of  these 
two  articles  is  increasing  month  by  month,  and  holding  more  than  their 
own  against  English  goods  of  the  same  character.  You  see  by  the 
diversified  nature  of  the  exports  as  shown  in  the  certified  copies  of 
manifests  forwarded  you  that  we  can  compete  successfully  (or  our  busi- 
ness would  cease)  with  any  country,  notwithstanding  the  ignorant, 
flatulent,  and  effervescing  articles  that  are  from  time  to  time  issued  by 
a  portion  of  our  press.  The  inwardness  of  the  inception  of  these  ar- 
ticles is  a  truckling  subservience  to  the  foreign  importer  and  foreign 
shipping  agent  for  advertisement;  the  former's  only  desire  being  that 
he  import,  break  packages,  and  distribute  from  a  center,  but  it  is  a 
matter  for  congratulation  that  although  they  are  persevering  and  loud- 
mouthed, they  are  few. 

Yours,  very  respectfully, 

J.  M.  Lachlan, 
Oeneral  Manager  United  States  and  Brazil  Mail  Steamship  Co. 


THE    UNITED    STATES    AND    LATIN    AMERICA. 
Exhibit  A. 


221 


EXPORTS   BY   THK   BRAZIL   SHIPS. 


Exports  to  St.  Thomas,  W.  I.;  Para,  Maranham,  Pernamhwo,  Bahia,  Rio  de  Janeiro,  San 
tos,  Pnranagua,  Antonina,  Sania  Catliarina,  Rio  Grande  do  Sul,  Pelotas,  Porto  Alegro, 
Brazil;  Montevideo,  Uruguay;  Buenos  Ayres,  Argentine  Republic. 


Tear. 


1885 
18S6 
1887 
1888 


Average 

amonnt, 

one  ship 

per  voyage. 


$155,  000 
195,  000 
250,  000 
310,  000 


Three  ships, 

16  trips 
per  aunum. 


$2, 480,  000 
3,120,000 
4,  00(1,  000 
4,  960,  000 


Increase 

against 

each 

preceding 

year. 


Per  cent. 


lucreane 

against 

1885. 


Per  cent. 


26 
61 
100 


No. 


Name  of  State  manufactured 
or  produced  in. 


California 

Connecticut... 

Delaware 

Georgia 

lUiuuis 

Iowa 

Kansas 

Louisana 

Maryland 

Michigan 

Massachusetts 

Minnesota 

Missouri 


Average 
percentage. 


0.05 
7.00 
0.05 

11.40 
2.00 
0.40 
0.25 
0.25 
0.25 
3.00 

14.00 
C.90 
1.85 


No. 


Name  of  State  manufactured 
or  produced  in. 


Average 
percentage. 


Maine... 

North  Carolina 

Ne^«  Jersey 

New  Tork 

Ohio 

Oregon , 

Pennsylvania  ., 
Rhode  Island  . 
South  Carolina 

Vermont 

Virginia , 

Wisconsin 


0.10 
0.60 
4.75 

25.75 
2.00 
0.05 

20.  25 
2.10 
0.65 
0.10 
0.50 
1.75 


Exhibit  B. 


THE  BRITISH  FOREIGN  MAIL,   SERVICE. 


In  the  Blue  Book,  34th  Report  of  the  (British)  Postmaster-General  for  1888,  pre- 
sented to  both  Houses  of  Parliament  by  command  of  Her  Majesty,  Appendix  G,  pages 
28  and  29,  the  following  is  a  literal  and  verbatim  transcript : 

« 
Australia:  ' 

Colombo  and  Melbourne,  Suez  and  Sydney, 
Aden  and  Brisbane,  San  Francisco  and 
Sydney,  London  and  Sydney  and  interme- 

mediate  Australian  ports £1,175    0    0 

Brazil  River  Platte  and  Chile  : 

Bimonthly  service  from  Southampton .  £5,2.54     0    0 

Fortnightly  service  from  Liverpool £11,439    0    0 

Cape  Good  Hope  and  Natal  contracts : 

With  colonial  governments 

Cape  Good  Hope  and  Natal : 

For  calls  at  St.  Helena  and  Ascension £2, 774    0    0 

Natal  parcel  post £36    o    0 

East  India  and  China  , £360,000     0    0 

East  India  and  China: 

Parcel £265,000    0    0 

Post 2,075    0    0 


'J22  TRADE    AND    TRANSPORTATION    BETWEEN 

Ea«t  Coast  Africa : 

Aden  and  Zanzibar  service  provided  under  0 

arrangement  with  foreign  office. 

Enrope : 

Dover  and  Calais £12,440     0    0 

Dover  and  Ostend 4,500     0    0 

Liverpool,  Constantinople,  and  Smyrna,  par- 
cel post 11     0    0 

London  to  Hamburg,  parcel  post 141     0    0 

North  America : 

Queenstown  to  New  York 82,741     0    0 

Bermuda  to  New  York 300    0    0 

Panama  to  Valparaiso 3,160    0    0 

West  Indies : 

Fortnightly  service 90,000     0    0 

Additional  services  (non-contract  service)..  233     0     0 

Liverpool  to  West  Indies  and  Mexico 1,127    0    0 

Belize  and  New  Orleans 1,600    0     0 

West  Coast  of  Africa 9,369    0    0 

853,375    0    0 
Add  for  Australian,  etc.,  service  now  under 
consideration  and  negotiation,  say 200,000    0    0 


1,053,375    0    0=      $5,151,003^ 

THE  SPECIAL  SUBSIDIES  PAID  BY   GREAT  BRITAIN. 

Besides  the  above,  there  is  paid  by  the  British  admiralty  a  subvention  to  merchant 
steamers  for  state  purposes.     To  Cunard  Line  for  steam-ships  Umhria,  Etruria,  and 
Aurania,  158.  per  gross  register  ton  per  annum  as  long  as  they  have  mail  contract 
from  Queenstown  to  New  York,  or  20*.  if  same  is  withdrawn. 
S.  S.  Aurania : 

Gross  tonnage,  7,269  tons,  at  15«.  (with  contract) £5,451     15    0 

20».  (without  contract) 7,269      0    0 

S.  S.  Umhria : 

Gross  tonnage,  7,798  tons,  at  158.  (with  contract) , 5,848    10    0 

208.  (without  contract) 7,798      0    0 

S.  S.  Etruria : 

Gross  tonnage,  7,790  tone,  at  158.  (with  contract) 5,842      0    0 

20«.  (without  contract), 7,790      0    0 

The  Oceanic  Steam  Narigaiion  Co.,  ttd. 

The  2  new  ships  of  this  company : 

With  contract,  £0,,'><)0;  on  2  steamers £13,000     0    0 

Without  contract,  208.,  £8,.500;  two  steamers 17,000     0    0 

Extract  from  Report  of  the  Superintendent  of  Foreign  Mails,  June  30lh,  1888,  page  6. 

North-German  Lloyd  (from  New  York) $174,022.89 

Cunard  (from  New  York) 88,385.17 

White  Star  (from  New  York) 14,204.76 

Liverpool  and  Great  Western  (from  New  York) 28,505.44 

Anchor  (from  New  York) 3,, 094. 40 


•      THE    UNITED    STATES    AND    LATIN    AMERICA.  223 

Hamburg- American  (from  Now  York) $14,G2ri.  76 

Inmau  (from  New  York) 1,263.44 

Cuuard  (from  Boston) ' 1,911.0:? 

Thiugvalla  (from  New  York ) 4.7!! 

Steamer  Cumbrian  ( to  Africa) 

Geufral  Transatlantic  (from  Now  York) 2.'),  134.53 

RodStar  (from  New  York) ^ 18.93 

Netherlands  Steam  Navigation  Company  (from  New  York) 3. 13 

Total 353,258.61 

EEC  APITI7L  ATION. 

Total  amount  received  by  Cunard  and  Oceanic  Steam  Navigation  Companies  from 
Biitish  admiralty  subvention  for  state  purposes  per  annum,  with  contract  158.  per 
gross  ton,  and  postal  authorities  of  Great  Britain  and  United  States : 

Cunard  Line. 

S.  a.  Jnrania £5,45115     0 

a.  ii.  Umbria 5,848  10    0 

a.H.Etruria 5,842    0    0 

£17.142    5    0=$83,825.58 

Total  am't  rec'dfrom  Brit.  Gov't  for  Q'town 

mail   to  New  York  as  per  British  post- 

master-gen'l  report  (34th),  say,  half  of 

£82,741     0    0 £41,370  10    0=$202,301.75 

Paid  by  U.  S.  postal  authorities   as    per 

Snp't  Foreign  Mails  Report,  1888,   p.  6, 

annexed  herewith $88,385.17 

Distance  froniN.  Y.  to  Q'town,  average  winter  and  summer  routes  ..miles..       2,850 

Both,  ways do 5,700 

52  voyages  per  annum do 296,  400 

Amount  per  mile  received  in  subsidy,  etc.,  by  Cunard  Line do $1.26 

The  Oceanic  Steam  Navigation  Co.,  Ld. 

Total  amount  to  be  received  by  above  co'y  for  2  new  steamers  from  British  admi- 
ralty subvention  for  state  purposes,  with  contract,  15s.  per  gross  ton  per  annum  : 
2  new  steamers  as  per  copies  correspondence  respecting 
the  subvenlaou  of  merchant  steamers  for  state  pur- 
poses presented  to  both  houses  of  Parliament  by  com- 
mand of  Her  Majesty  (C.  5006) £13,000.    0     0=$63,570.00 

Total  amount   rec'd    from   British   Gov't    for    Q'town 
mail  to  New  York  as  per  British  postmaster-gen'l  report 

(34th),  say,  half  of  £82,741     0    0 41,370  10    0=202,301.75 

Paid  by  U.  S.  postal  authorities  as  per  Supt.  Foreign 
Mails  Report,  1888,  page  6,  annexed  herewith 14,204.76 

280.076.51 
Distance  from  N.  Y.  to  Q'stown  average  winter  and  sum- 
mer routes miles. .        2, 850 

Both  ways do 5,700 

52  voyages  per  annum do 296,400 

Amount  per  mile  received  in  subsidy,  etc.,  by  above  co'y $0.94 


224  TRADE    AND    TKANSPORTATION    BETWEEN 

North  German  Lloyd  S.  S.  Co. 

Amount  paid  above  Co'}'  by  U.  S.postal  authorities,  as  per  Bupt.  foreign 

mails,  report  1888,  page  6 $174,022.69 

Subsidy  paid  by  German  Gov't  (unknown)   

Query.  Amt.  rec'd  from  Brit.  Govt,  soa  postages 

Inward  letters  (unknown) 

Amt.  paid  per  mile  one  way  by  U.  S.  Gov't  postal  authorities  alone 1. 05 

Query.  What  is  paid  by  other  Gov'ts? 

Total  amt.  paid  by  British  Government  in  1888  for  foreign  and  colonial 

mail  packet  service f),  1.51,  003.75 

Total  amt.  paid  by  U.  S.  Gov't  for  the  trans-Atlantic  service  alone  to 

foreign  steamers  for  1888 353, 258.  61 


Total  amt.  paid  by  U.  S.  for  trans-Pacific  service  vessels  of  American" 
register  for  1888 37,302.86 

For  miscellaneous  service — 

Vessels  of  American  register  for  1888 $49, 506. 19 

Less 11,73.3.44 


Tendered  to  and  refused  acceptance  by  U.  S.  and  B. 

M.S.  S.  Co'y  as  inadequate 37,772,75 

Total  amt.  paid  to  American  ships  by  U.  S.  Gov't  for  1888 75, 075.  61 

do.                   do.               foreign  closed  mails 685.38 

Grand  total  amt.  paid  American  ships 75, 760. 99 


Trans-Pacific  service  paid  by  U.  S.  Gov't  to  vessels  of  foreign  register.  5, 290. 27 

Miscellaneous  service  do.  do 9,047.42 


14,337.69 


Total  amt.  paid  by  U.  S.  Gov't  to  foreign  ships  for  mails 367, 596.  30 

For  foreign  closed  mail  service  Trans- Atlantic 25,  ^63.  71 

Miscellaneous  do.  do.  100.64 


Total  amt.  paid  by  U.  S.  Govt,  to  foreign  ships  393, 560. 65 

Exhibit  C. 

ADDRESS  BY   WILLIAM  ELEROT   CURTIS  AT   THE    BAN^QUET   OF  THE   SPANISH- 
AMERICAN  COMMERCIAL  UNION,  MAY  1,  1880. 

Mr.  President:  I  am  asked  to  speak  of  our  manufacturing  industries.  It  is  a 
mighty  subject;  bigger  than  most  men  suppose.  Nobody  knows  what  our  forges  and 
factories  produced  in  1888.  We  will  have  to  wait  until  the  census  of  18iK)  lor  accurate 
returns,  but  putting  this  and  that  and  the  other  thing  together,  the  statisticians 
figure  out  an  estimate  and  make  the  total  $8,000,000,000— $8,000,000,000  worth  of 
manufactured  merchandise — to  eat,  to  wear,  to  use,  and  to  sell  ;  and  we  sold  but 
$130,000,000  outside  the  limits  of  this  fair  land  last  year. 

I  do  not  include  as  manufactured  merchandise  the  products  of  agriculture,  of  which 
■we  exported  $500,000,000  in  1888,  nor  the  products  of  the  mines,  or  forests,  or  fisheries, 
of  which  we  sold  some  $50,000,000  ;  but  it  is  well  that  every  man  should  know  that  we 
did  not  sell  enough  by  $40,000,000  to  pay  for  the  raw  material  import  ed  for  the  use  in  the 
production  of  this  merchandise.  I  haven't  the  figures  of  England's  trade  in  1888,  but 
a  previous  year  she  sold  $765,000,000  worth  of  the  same  class  of  goods,  $365,000,000  of 
^hich  were  cotton  fabrics,  $125,000,000  of  iron,  nearly  as  much  of  woolen,  and  soon, 


THE    UNITED    STATES    AND    LATIN    AMERICA.  225 

in  proportion.  And  a  great  part  of  this  export  went  to  South  America,  to  markets 
that  by  all  natural  laws  should  be  our  own,  and  would  be,  had  we  cultivated  them 
as  England  has  done. 

This  association,  as  I  understand  it,  is  intended  to  do  that  thing.  It  in  composed 
of  men  who  understand  what  the  trouble  is  and  seek  a  correction. 

RKCIPROCITT  TREATIES. 

Our  sales  of  provisions,  breadstuffs,  lumber,  petroleum,  and  some  other  articles 
might  be  enormously  increased  if  we  could  make  reciprocity  treaties  by  which  the 
duties  upon  these  articles  would  be  removed  by  our  neighbors,  so  that  they  might  be 
bought  and  used  by  the  common  people,  and  we  remove  our  duties  on  wool  and  sugar 
from  countries  that  make  such  a  concession.  I  had  the  honor  to  be  a  member  of  a 
commission  that  discussed  this  subject  with  most  of  the  Central  and  South  American 
Governments,  and  all  but  one  of  them  agreed  to  the  proposition.  We  need  direct 
banking  facilities,  too,  simpler  customs  regulations  down  there,  and  better  packing  up 
here,  but  the  greatest  obstacle  in  the  waj"^  of  increased  trade  is  the  lack  of  transpor- 
tation; and  that  can  not  be  removed  without  encouragement  on  the  part  of  ourGov- 
emment. 

THE  CARRYING  TRADE. 

The  cry  of  ♦'  subsidy"  has  frightened  Congress.  But,  Mr.  Chairman,  the  United 
States  is  one  of  the  most  liberal  nations  on  earth  in  giving  subsidies.  I  intend  no 
sarcasm.  A  subsidy,  as  we  understand  it,  is  pecuniary  assistance  to  facilitate  com- 
merce, and  our  Congress  offers  it  to  most  everything  but  ships.  We  subsidize  the 
sheep  of  Ohio  and  the  sugar  cane  of  the  South,  the  iron  of  Pennsylvania,  and  the  lum- 
ber of  Michigan.  Every  railroad  is  subsidized,  every  stage  coach  and  every  steam- 
boat that  plies  our  inland  waters  or  skirts  our  coast. 

Every  town  in  which  a  post-office  is  established  or  a  Government  building  erected 
is  subsidized  at  the  expense  of  the  tax-payers  for  the  convenience  of  commerce,  but 
when  it  comes  to  ocean  mails  the  practice  stops.  Every  commercial  nation  but  our 
own  assists  its  ocean  steamers,  and  the  experience  of  ages  has  taught  that  it  is  the 
only  way  to  establish  lines  of  foreign  trade. 

AMERICA  DISCOVERED  BT  A  SUBSIDIZED  SHIP. 

Why,  Mr.  Chairman,  America  was  discovered  from  the  deck  of  a  subsidized  ship. 
[Laughter  and  applause.]  A  woman  left  her  jewels  with  a  banker  of  Seville  to 
secure  its  payment,  and  a  clerk  in  the  counting-room  of  that  banker,  perhaps  the 
very  one  who  counted  out  the  gold,  afterward  gave  his  name  to  this  hemisphere. 
England  secured  her  commercial  supremacy  by  subsidy.  Nor  has  she  given  her 
service  to  the  lowest  bidder,  but  to  the  best,  and  in  long  contracts,  so  that  the  ship- 
owners might  know  what  to  depend  upon  in  the  future.  Some  years  ago  an  attempt 
was  made  by  a  rival  line  to  get  the  mails  away  from  the  Cunarders  by  underbidding; 
but  that  British  postmaster-general  whose  eyes  were  sightless,  but  who  saw  with  his 
mind  much  that  other  men  overlooked,  said  "  No."  The  Cunarders  had  done  the 
service  satisfactorily  for  half  a  century,  he  said,  and  had  built  a  Heet  of  staunch  and 
Bwift  ships  with  the  expectation  of  a  continuance,  and  they  should  keep  the  con- 
tract. The  same  policy  was  pursued  in  reference  to  the  Royal  Mail  Company,  whose 
vessels  carry  the  mails  of  England  to  the  West  Indies  and  South  American  ports. 
The  attempt  of  a  rival  company  to  underbid  them  was  rebuked. 

But  we  don't  do  things  that  way  in  the  United  States. 

PAY  SHOULD  EQUAL  THE  LENGTH  OF  THE  VOYAGE. 

American  steam-ships  will  never  be  fairly  paid  until  their  compensation  is  reckoned 
by  the  length  of  the  voyage,  instead  of  the  number  of  letters  carried,  and  we  will 
S.  Ex.  54 15 


':2(]  TRADE  AND  TRANSPORTATION  BETWEEN 

have  few  steamers  until  contracts  are  made  for  more  than  a  single  year.  When  rates 
of  foreign  postage  were  reduced  under  the  treaty  of  Berne — under  the  lutemationa- 
Postal  Union — no  one  intended  that  the  reduction  should  be  made  at  the  expense  of 
the  steamship  owners.  The  interstate  commerce  law  prohibits  the  railroad  own- 
ers from  charging  as  much  for  a  short  haul  as  for  a  long  haul,  and  the  compensation 
given  to  the  stage-coaches  in  the  West  is  measured  by  the  distance  they  travel  and 
the  cost  of  the  trips.  The  ocean  service  is  the  only  branch  of  our  postal  system  that 
is  self-supporting,  and  Mr.  Vilas  confessed  that  he  had  to  pay  the  boats  on  the  rivers 
of  the  South  excessive  compensation  in  order  to  provide  planters  with  facilities  for 
reaching  market. 

Is  there  any  greater  wrong  in  affording  the  merchants  of  New  York  facilities  for 
transportation  to  the  South  American  ports  than  in  furnishing  the  same  to  the  mer- 
chants of  Evansville,  Ind.,  or  the  planters  of  the  Chattahoochee,  or  the  market  garden- 
ers along  the  Chesapeake,  or  the  summer  visitors  of  Buzzard's  Bay  and  Bar  Harbor? 
Let  me  cite  a  few  illustratious.  During  the  last  year  the  Post-Office  Department  paid. 
$44,500  for  the  transportation  of  mails  on  the  rivers  of  Arkansas,  and  only  $13,715 
for  the  transportation  of  mails  to  Japan;  $54,701  on  the  rivers  of  Washington  Terri- 
tory, and  only  $42,593  to  all  the  Asiatic  and  Australian  ports.  We  paid  $79,637  for 
carrying  the  mails  on  the  rivers  of  Florida,  but  only  $47,997  for  sending  them  to  all 
Central  and  South  America  and  to  the  eutire  West  Indies,  with  the  exception  of 
Havana.  We  paid  $20,879  on  the  Ohio  River,  between  Paducah  and  Louisville; 
$101,566  to  subsidize  stage-coaches  in  Nevada;  $239,.568  in  Washington  Territory; 
$163,893  in  Idaho;  and  $417,000  in  Colorado,  and  but  $86,890  to  encourage  American 
steamers  all  over  the  world. 

SOME   STRIKING   COMPARISONS. 

During  the  summer  season  of  1888,  in  order  that  the  good  people  who  go  to  Nan- 
tucket and  Martha's  Vineyard  might  get  their  letters  regularly,  the  Government  of 
the  United  States  paid  a  subsidy  amounting  to  $12,093.  This  for  five  months.  Dur- 
ing the  same  time  it  paid  $4,88.5,  a  little  more  than  one-third  as  much,  to  build  up  a 
trade  with  Brazil.  The  little  steam-boat  ou  the  Androscoggin  Lakes  would  have  re- 
ceived a  third  more  than  the  Red  D  Line  to  Venezuela  had  it  kept  going  the  entire 
year,  but  it  stopped  when  the  summer  boarders  went  homo,  and  was  satisfied  with 
a  subsidy  of  $3,700  for  four  months,  while  the  Venezuela  Line  got  $6,000  for  twelve 
mouths. 

The  excursion  boat  that  plies  between  Watkins  Glen  and  Geneva,  N.  Y.,  got  twice 
as  much  in  1884  as  the  Venezuela  steamers,  and  the  ferry  between  Norfolk  and  Cape 
Charles  got  as  much  last  year  alone  as  the  Red  D  Line  has  received  in  five  years. 
The  steamers  of  the  Chesapeake  Bay  and  its  tributaries  get  $49,539  annually,  or  more 
than  is  paid  to  all  the  Central  and  South  American  lines,  while  the  boat  between  Nor- 
folk and  Baltimore  got  $13,518,  or  $2,000  more  than  tlie  line  to  Brazil.  The  coastwise 
steamers  got  $563,000  last  year  for  less  than  500,000  miles  traveled,  which  is  more  than 
$1  a  mile,  while  the  steamers  to  South  America  and  the  West  Indies  traveled  more 
than  2,000,000  miles  and  got  less  than  $48,000,  2  cents  and  4  mills  a  mile. 

Nor  are  you  alone  interested  in  this  question.  This  city  has  just  witnessed  one  of 
the  most  monstrous  and  impressive  demonstrations  the  world  has  overseen,  coumiemo- 
rating  the  end  of  an  old  and  the  conimoncemeut  of  a  new  epoch.  But  demonstrations 
of  even  greater  significance  than  balls  and  banquets  and  marching  columns  and  fiag- 
covered  fleets,  more  typical  of  American  progress,  more  prophetic  of  future  prosperity, 
are  found  in  almost  every  village  in  tlie  land.  Inventive  genius  has  so  multiplied 
our  capacity  of  production  that  one  skillful  hand  can  accomplish  more  than  one  hun- 
dred could  a  century  ago.  This  is  an  age  of  miracles.  No  obstacle  to  human  progress 
arises  without  a  suggestion  from  some  genius  to  clear  it  away,  and  a  million  brains 
will  bo  at  work  again  to-morrow  seeking  methods  by  which  our  capacity  of  produc- 
tion may  be  made  greater  still. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  227 

ATTITUDE  OF  THE  ADMINISTRATION. 

We  must  make  less  or  sell  more.  The  first  alternative  is  impossible  ;  the  second 
imperative.  Neither  capital  nor  labor  wonkl  permit  anything  else,  and  so  we  stand 
upon  the  threshold  of  a  now  century  of  national  life  with  a  problem  as  serious  as  that 
of  slavery,  which  vexed  the  nation  thirty  years  ago.  And  yet  the  solution  is  simple 
enough,  and  I  think  is  understood  by  those  upon  whom  the  responsibility  rests.  I 
can  say  for  the  President  that  he  knows  where  the  trouble  lies,  and  has  the  courage 
to  correct  it  so  far  as  his  authority  and  influence  can  reach.  It  is  violating  no  confi- 
dence to  say  that  the  expansion  of  American  commerce  on  longitudinal  lines  is  to  be 
the  feature  of  his  administration,  and  Mr.  Blaine  and  Mr.  Wanamaker  are  entirely 
and  heartily  in  sympathy  with  him.  I  think,  too,  that  in  the  next  House  of  Repre- 
sentatives will  be  found  the  same  spirit  of  enterprise  and  justice  that  exists  in  the 
Senate;  but  everybody  here  who  knows  a  Congressman  should  make  it  a  business  to 
educate  him. 

I  expect  great  good  from  the  conference  of  delegates  from  the  American  nations 
that  is  to  assemble  in  October.  It  was  my  privilege  to  prepare  and  secure  the  pass- 
age by  Congress  of  the  bill  that  authorized  it,  in  accordance  with  recommenda- 
tions of  the  South  American  Commission.  [Applause.]  Right  here  I  want  to  make 
an  important  suggestion.  The  impression  is  abroad  in  South  America,  and  is  assid- 
uously encouraged  by  the  many  newspapers  of  that  continent,  which  are  under  Eu- 
'■opean  influence,  that  the  United  States  has  fixed  a  diplomatic  trap  to  catch  its  neigh- 
bors in  ;  that  Mr.  Blaine  has  some  profound  political  conspiracy  to  carry  out,  and  the 
apprehensions  of  some  of  the  governments  have  been  so  excited  that  their  delegates 
are  coming  here  with  the  spirit  of  resistance  to  everything  that  may  be  proposed. 
This  is  a  serious  mistake,  and  those  of  you  who  have  correspondents  in  South  Amer- 
ica should  correct  it.  There  is  no  political  purpose  in  this  conference  whatever  be- 
yond the  discussion  of  methods  of  arbitration  by  which  war  may  be  avoided  and 
peace  preserved,  and  that,  I  take  it,  is  one  of  the  most  important  commercial  topics 
that  could  be  discussed. 

Thanking  you  for  the  opportunity  of  coming  here,  and  pledging  myself  to  the  pro- 
motion of  your  interests  at  Washington,  I  am,  Mr.  Chairman  and  gentlemen,  your, 
most  obedient  servant.     [Applause.] 


228  TRADE    AND    TRANSPORTATION    BETWEEN 


XVIII. 

THE  RED  "D"  LINE  OF  STEAMERS. 


New  York,  September  25,  1889. 
Dear  Sir:  The  Red  "  D"  Line  may  be  said  to  have  been  estf. Wished 
about  the  year  1838,  as  that  is  the  date  when  the  first  vessel  was  dis- 
patched. For  many  years  sailing  vessels  alone  were  employed.  In  the 
autumn  of  1879  it  was  decided  to  substitute  steam  for  sail  and  three 
German  steamers  were  chartered.  The  first  of  them,  the  Felicia,  1125 
tons  gross,  was  dispatched  on  November  15,  1879.  These  boats  were 
subsequently  replaced  by  American  steamers  and  the  line  is  now  com- 
posed of  the  following  steam-ships,  all  specially  built  for  the  trade: 

On  line  from  New  York  to  Cura^oa  Puerto  Cabello,  La  Guayra: 

S.  S.  Valencia tons  gross..  1,598 

S.S.Philadelphia do....  2,100 

S.S.Cardcas do....  2,600 

S.  S.  Feneziiela  (building) do 3,000 

On  branch  line  between  Cura^oa  and  Maracaibo : 

S.  S.  Maracaibo tons  gross..  1,262 

S.S.Merida do 517 

The  steam-ships  on  the  main  line  are  iron,  and  were  built  by  The 
William  Cramp  &  Son  Ship  Engine  Building  Company,  of  Philadelphia, 
tinder  the  supervision  of  the  American  Record  and  British  Lloyds,  hav- 
ing the  highest  classification  in  both. 

The  Maracaibo  and  Merida  are  wooden  steamers,  built  in  Philadel- 
phia— the  hulls  by  Charles  Hillman  &  Co.,  and  the  machinery  by  Neafie 
&  Levy. 

All  the  steamers  are  provided  with  very  superior  accommodations 
for  passengers  and  every  approved  modern  improvement  for  safety, 
convenience,  and  comfort ;  the  latest  additions  to  the  fleet  being  lit  by 
Edison's  incandescent  electric  light. 

The  main  line  is  from  New  York  to  the  Island  of  Cura5oa,  from  thence 
to  Puerto  Cabello,  and  thence  to  La  Guayra,  Venezuela,  returning  over 
the  same  route.  The  branch  line  is  from  the  Dutch  Island  of  Cura5oa 
to  Maracaibo,  Venezuela.  At  Curaeoa  regular  connection  is  made  with 
the  steamers  of  the  main  line  from  and  to  New  York. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  229 

Steamers  leave  New  York  every  twelve  days,  and  if  the  trade  con- 
tinues to  increase  and  encouragement  is  given  by  our  Government,  the 
frequency  of  the  service  may  be  increased. 

THE  COST  OF  CONSTEUCTION  AND  MAINTENANCE. 

It  is  diflBcult  to  state  the  difference  in  the  cost  of  constructing 
American  ships  as  compared  with  those  built  in  Europe.  There  is  a 
great  difference  in  the  style  of  building  ships  and  finishing  them,  be- 
sides which  the  textile  strength  of  American  iron  is  greater  than  the 
English,  and  an  American  boat  built  according  to  same  specifications 
would  be  stronger  than  an  English  one.  Almost  all  boats  built  in  this 
country  are  intended  for  a  special  trade,  and  it  is  doubtful  if  an  English 
builder  would  construct  a  steamer  from  American  plans  and  specifica- 
tions for  much  less  than  she  could  be  built  here. 

On  the  other  hand  it  is  very  doubtful  if  you  could  get  an  American 
builder  to  bid  on  a  boat  to  be  constructed  on  the  plan  of  the  English 
"tramp." 

It  is  estimated  that  the  difference  in  cost  in  this  country  and  England 
between  strictly  first-class  passenger-steamers  is  not  more  than  about 
15  per  cent.,  while  no  doubt  it  would  be  much  greater  in  the  case  of 
the  cheap  freight- boat  kuown  as  a  "tramp." 

The  principal  difference  in  cost  of  running  the  ships  is  due  to  the 
wages  paid  the  officers  and  crew,  and  the  cost  of  feeding  them.  Ameri- 
cans are  not  willing  to  work  for  the  same  wages  that  are  paid  on  Euro- 
pean steamers,  nor  are  they  willing  to  live  in  the  same  manner. 

On  the  same  wages  paid  Europeans  it  would  be  impossible  for  Amer- 
ican officers  to  support  their  families  in  this  country.  As  a  rule  the 
oflBcers  and  crews  of  American  ships  work  harder  and  keep  their  ships 
in  better  condition  than  foreigners.  This  is  especially  true  in  regard 
to  machinery.  In  this  way  they  earn  a  portion  of  the  additional  wages 
paid  them. 

COMPETING  LINES. 

There  are  two  regular  lines  of  foreign  steamers  running  from  New 
York  to  ports  called  at  by  our  steamers,  both  of  which  receive  subsi- 
dies from  their  governments,  namely.  The  Koninklijke  West  ludische 
Maildienst  (Dutch)  and  the  Compaiiia  Transatldntica  Espaiiola  (Span- 
ish). 

The  steam-ship  lines  from  European  ports  to  the  ports  reached  by  our 
steamers  are:  The  French  line  from  Marseilles,  San  Nazaire,  and  Bor- 
deaux ;  the  Dutch  line  from  Amsterdam  •  the  royal  mail  from  South- 
ampton j  the  Spanish  line  from  Spain,  Cuba.  All  of  these  receive  sub- 
sidies. 

In  addition  to  the  foregoing  there  are  two  English  lines  and  one  Ger- 
man,  carrying  cargo  only,  that  are  not  subsidized. 


230      tkade  and  transportation  between 

COMPENSATION  FOR  CARRYING  THE  MALLS. 

Compensation  paid  the  Eed  "D"  Line  for  carrying  mails  is  as  follows : 

Year  ending  December  31,  1887 $5,849,21 

Year  ending  December  31,  1888 6,374.66 

The  number  of  voyages  per  year  was  about  thirty.  Previous  to  1886 
the  compensation  paid  was  sea  postage ;  since  that  date  sea  and  inland 
postage  has  been  allowed. 

Before  Venezuela  joined  the  Postal  Union  the  rate  of  postage  to  that 
country  was  10  cents  per  half  ounce.     It  is  now  5  cents. 

The  advantage  which  steam-ships  employed  upon  the  coast  and  in- 
land waters  enjoy  over  us  in  mail  contracts  is  best  shown  by  the  fact 
that  when  the  mails  were  forwarded  to  Havana  from  New  York  the 
service  was  under  the  charge  of  the  superintendent  of  foreign  mails, 
and  the  total  amount  allowed  was  $0,833.06.  In  1886  a  change  was 
made,  and  the  mails  have  since  been  sent  by  rail  to  Tampa  Bay,  and 
from  thence  by  steamers  to  Havana.  A  law  having  been  passed  by 
Congress  which  enabled  the  Postmaster-General  to  transfer  this  route 
to  the  steamboat  seivice,  the  Postmaster-General,  after  paying  for  the 
transportation  by  rail  to  Tampa  Bay,  contracted  to  pay  the  steamer 
for  carrying  them  from  there  to  Key  West  and  Havana  the  sum  of 
$58,000,  the  distance  being  only  183  miles,  against  1,210  miles  from  New 
York. 

THE    COST  OF  CARRYING  THE  MAILS. 

It  is  not  practical  to  divide  the  expenses  of  a  steamer  and  thus 
ascertain  the  cost  of  carrying  the  mails.  With  American  steamers 
engaged  in  the  foreign  trade,  the  Government  acts  as  a  dead-head  and 
practically  asks  them  to  work  for  nothing.  We  would  not  do  the  same 
amount  of  work  for  a  private  concern  for  anything  like  the  miserable 
pittance  paid  us  for  carrying  the  United  States  mails. 

The  only  payment  made  to  us  by  any  foreign  Government  for  carry- 
ing the  mails  is  a  nominal  sum  allowed  by  Curajoa. 

Almost  all  goods  shipped  to  Venezuela  are  on  orders  received  from 
merchants  of  that  country.  The  principal  goods  shipped  are  flour,  corn, 
meal,  lard,  butter,  kerosene,  tobacco,  cotton  goods,  wooden  ware,  ma- 
chinery, agricultural  implements,  railroad  and  street  cars,  clocks,  safes, 
glassware,  furniture,  and  in  fact  almost  everything  that  we  have  to 
export. 

If  our  Government  wants  to  develop  the  trade  between  this  country 
and  South  and  Central  America  and  the  West  Indies  it  must  do  as 
every  pjuropean  country  has  done,  which  is  establish  and  maintain  reg- 
ular mail  communication  with  them.  We  may  theorize  as  much  as  we 
please,  but  the  fact  remains  that  the  countries  that  have  the  trade  are 
those  that  have  established  reguhir  mail  communication,  and  if  we 
want  any  share  of  it  we  must  follow  suit. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  231 

If  our  great  object  is  to  save  a  few  dollars,  then  we  should  continue 
to  give  our  mails  to  any  tramp  that  may  happen  to  be  going  to  one  of 
these  countries,  and  sponge  on  the  few  American  lines  that  are  fighting 
against  great  odds ;  but  if  we  want  to  develop  our  trade  we  must  be 
willing  to  pay  a  fair  amount  for  good  service,  and  see  that  we  get  it. 
I  am  yours,  very  truly, 

•  Ernest  C.  Bliss. 


New  York,  December  26, 1889. 

Dear  Sir  :  Since  my  letter  of  September  25  was  written  the  Ham- 
burg American  Steam  Packet  Company  have  advertised  that  they  will 
dispatch  steamers  between  New  York  and  La  Guayra,  Puerto,  Cabello, 
Cura^oa,  etc.,  twice  a  month,  beginning  in  January. 

This  will  make  the  third  line  of  foreign  steamers  running  in  direct 
competition  with  ours.    The  headquarters  of  these  three  lines  are  in 
Europe,  and  Euroi)eans  alone  are  employed  on  board  the  ships,  their 
wages  being  paid  and  their  families  supported  out  of  the  freight  col 
lected  from  the  merchants  of  this  country  and  South  America. 

The  Hamburg  American  Comi^auy  now  practically  monopolizes  the 
trade  between  this  country  and  Hamburg,  and  also  between  Hamburg 
and  Venezuela,  Colombia,  and  the  West  Indies. 

Not  satisfied  with  doing  all  the  carrying  trade  between  her  own  ports 
and  ours,  Germany  now  seeks  to  divide  with  England  the  trade  that 
has  been  built  up  between  the  United  States  and  South  and  Central 
America  and  the  West  India  Islands.  In  endeavoring  to  do  so  her 
shipowners  are  encouraged  by  the  sympathy,  if  not  the  active  support, 
of  their  Government. 

Yours,  very  truly, 

Ernest  C.  Bliss. 

William  E.  Curtis,  Esq., 

Washington,  D.  G. 


THE    UNITED    STATES   AND   LATIN   AMERICA.  233 


XIX. 

THE  PROPOSED  NAVAL  RESERVE. 


In  a  recent  report  to  Congress,  the  Hon.  William  0.  Whitney,  late 
Secretary  of  the  Xavy,  spoke  as  follows  : 

The  policy  of  this  country  has  always  been  opposed  to  the  establishment  of  large 
permanent  naval  and  military  organizations.  This  policy,  for  a  country  with  a  great 
coast-line  and  important  commercial  interests,  almost  necessitates  the  maintenance  of 
auxiliaries  in  the  way  of  naval  and  military  reserves.  The  land  forces  have  such 
auxiliaries  in  the  shape  of  State  militia  or  national  guards.  These  constitute  large 
bodies  of  troops,  well  organized  and  equipped,  thoroughly  well  trained  and  disci- 
plined, ready  to  take  the  field  and  to  become  a  part  of  a  regular  military  establish- 
ment when  required. 

A  public  feeling  seems  to  exist  for  the  creation  of  a  naval  reserve. 

Committees  of  the  Chambers  of  Commerce  of  New  York  and  San  Francisco  havt 
passed  resolutions  urging  the  organization  of  such  a  force  as  a  means  for  providing 
for  the  coast  defense  and  meeting  the  increased  demands  of  the  regular  naval  estab- 
lishment for  men  and  vessels  upon  the  outbreak  of  war.  Inquiries  have  also  been 
made  at  the  Department  from  cities  of  the  Great  Lakes,  and  meetings  have  been  held 
in  cities  of  the  South  indorsing  the  formation  of  such  a  national  organization. 

THE  QUESTION  OF  COAST  DEFENSE. 

The  Department  has  informed  itself  fully  of  the  different  systems  of  organization 
for  coast  defense  and  naval  reserves  at  present  in  force  in  foreign  couutries,  and  is 
prepared  to  formulate  a  general  plan  for  a  similar  organization  to  meet  the  require- 
ments and  conditions  of  our  own  institutions.  It  should  resemble  in  organization 
that  of  the  militia  or  national  guard,  rest  upon  the  foundation  of  local  interest,  con- 
template the  employment  and  rapid  mobilization  of  steamers  enrolled  on  an  auxiliary 
navy  list,  and  be  calculated  to  produce  the  best  results  upon  a  comparatively  small 
national  expenditure.     I  ask  for  this  question  the  earnest  consideration  of  Congress. 

It  may  not  be  out  of  place  as  a  branch  of  this  subject  to  call  attention  to  one  of  the 
incidental  consequences  of  the  policy  pursued  by  other  countries  in  this  matter  of  a 
naval  reserve.  In  time  of  war  troop  ships  or  transports  are  in  great  demand.  Sev- 
eral European  governments  make  an  anaual  contribution,  based  on  tonnage,  to  com- 
panies constructing  new  vessels.  The  consideration  to  the  government  is  a  counter 
agreement,  permitting  the  goverument  to  take  such  a  vessel  for  a  transport  in  time 
of  war  upon  terms  named  in  the  agreement.  The  government  officials  are  also  con- 
sulted as  to  her  mode  of  construction,  and  she  goes  onto  the  naval  reserve  list. 
These  payments  are  incidentally  in  the  nature  of  a  subsidy  to  the  ship-owner,  and 
this,  with  the  liberal  payments  for  goverument  transportaticm  of  mails,  etc.,  keeps  a 
large  fleet  of  merchantmen  afloat  as  a  reserve  ready  for  a  time  of  war.  Without 
ships  and  trained  seamen  there  can  be  no  naval  reserve. 


234  TRADE    AND    TRANSPORTATION    BETWEEN 

ENGLAND'S   NAVAL   KESEUVE. 

A  notable  illustration  of  tho  generosity  and  courage  with  which  England  pushes 
her  shipping  interest  is  seen  in  the  manner  in  which  she  is  at  this  moment  dealing 
with  the  trade  of  the  North  Pacific.  It  has  been  thus  far  principally  under  tl  e 
American  flajr  and  contributory  to  Sau  Francisco  and  tho  United  States.  The  British 
Government  iind  Canada  together  are  proposing  for  the  establishment  of  a  line  of 
first-class  steamers  from  Vancouver  to  Japan.  Tho  subsidy  is  likely  to  bo  $:W0,000 
annually— £45,000  from  England  and  £ir),000  from  Canada.  There  will  also  be  con- 
tributed from  the  naval  reserve  fund  probably  f.5  per  ton  annually  for  each  ship  con- 
structed for  the  route,  which  will  increase  the  sum  by  probably  $125,000.  Under 
such  competition  it  is  quite  easy  to  conjecture  what  will  become  of  tho  American  flag 
and  our  resources  in  the  way  of  a  naval  reserve  in  the  North  Pacific. 

RECOMMENDATION  OF  ADMIRAL  PORTER. 

David  D.  Porter,  Admiral  of  the  Navy,  in  a  recent  report  says  : 

Every  merchant  knows  that  a  line  of  American  ocean  steam-ships  can  not  be  main- 
tained without  subsidies  from  tiie  Government.  In  regard  to  this  a  misapprehension 
prevails  among  the  uninformed,  who  consider  it  a  proposition  for  the  Government  to 
"  foster  monopolies." 

Now,  there  is  a  great  difference  between  granting  a  subsidy  and  fostering  a  mo- 
nopoly. In  the  latter  case,  the  sole  power  and  permission  to  deal  with  a  certain 
place  or  in  a  certain  article  is  granted,  while  the  case  of  a  subsidy  is  simply  an  assist- 
since  to  an  enterprise  from  which  a  return  is  expected,  and  such  subsidies  as  I  have 
advocated  should  not  be  confined  to  any  particular  line  of  steamers,  but  should  bo 
given  to  all  ship-owners  who  are  willing  to  make  their  ships  conform,  in  a  prescribed 
degree,  to  the  re(iuirements  of  a  vessel  of  war,  said  ships  to  be  constructed  under  the 
supervision  of  the  Secretary  of  the  Navy. 

This  is  what  other  commercial  nations  do,  and  it  is  only  justice  to  the  Navy  and 
the  country  that  we  should  pursue  a  course  that  will  double  or  treble  the  number  of 
our  cruisers  in  time  of  war.  One  way  of  granting  a  subsidy  would  be  to  enact  the 
"  tonnage  bill"  several  times  brought  before  Congress,  This  bill  iirovides  that  30 
cents  per  ton  shall  be  allowed  every  vessel  propelled  by  sail  or  steam  and  built  and 
owned  in  the  United  States  and  trading  with  foreign  countries,  for  every  thousand 
miles  sailed  or  steamed,  the  contract  to  hold  good  for  a  term  of  years,  with  such  re- 
strictions regarding  the  vessels  as  the  Government  shall  impose. 

A  TONNAGE   BILL  THE   SIMPLEST   PLAN. 

This  would  be  the  simplest  plan  for  resurrecting  the  mercantile  marine,  and  the 
Government  would  have  at  its  disposal  a  class  of  vessels  little  inferior  to  the  regular 
cruising  ships  of  war.  In  fact,  the  chances  are  the  steam  merchant  vessels  would  be 
superior  in  speed,  which  would  be  the  chief  desideratum  with  commerce  destroyers. 
By  a  proper  subsidy,  such  as  I  have  indicated,  many  industries  would  be  assisted, 
those  of  iron  and  steel,  coal  mining,  ship-yards,  canvas,  boat-building,  hardware, 
glass-making,  pottery,  furniture^  painters,  engine-builders;  in  short,  a  hundred  dif- 
ferent branches  of  trade  which  combine  to  make  a  complete  vessel,  industries  that 
are  now  languishing  for  want  of  this  very  stimulus  which  they  would  enjoy  but  for 
the  lack  of  forethought  in  those  who  should  labor  to  advance  every  employment  in 
which  our  citizens  are  engaged. 

It  is  not  so  much  tho  building  proper  of  American  steam-ships  that  makes  them  cost 
more  than  vessels  constructed  abroad  as  it  is  the  expense  of  fitting  them  out,  for 
there  is  not  sufficient  competition  in  this  country  to  bring  that  kind  of  work  down  to 
the  standard  of  foreign  countries  where  labor  is  so  much  cheaper.  Ships  built  in 
Great  Britain  cost  10  percent.  loss,  but  ■when  the  better  finish  of  American  ships  and 


THE    UNITED    STATES    AND    LATIN    AMERICA.  235 

the  snperiority  of  our  iron  are  cousidered,  the  statements  that  it  would  be  better  for 
us  to  build  ships  on  the  Clyde  or  Mersey  are  seen  to  be  fallacious. 

THE  QUESTION   OF  FREE  SHIPS. 

With  all  these  facta  staring  our  legislators  in  the  face,  they  should  not  hesitate  a 
moment  between  the  proposition  to  abolish  the  shipping  laws  so  that  vessels  conld 
be  built  abroad  for  us  by  British  mechanics,  and  that  to  foster  the  industries  of  our 
own  country  and  have  our  own  ocean  steamers  constructed  in  the  United  States  under 
the  supervision  of  naval  officers,  so  that  the  Government  would  have  vessels  of  suit- 
able character  to  perform  the  service  required  of  them  as  commerce  destroyers  in  time 
of  war. 

This  argument  doubtless  conflicts  with  the  theories  of  the  free-traders  of  Great  Brit- 
ain and  the  United  States,  who  require  that  England  shall  do  all  our  carrying  trade 
aud  reap  the  profits;  but,  leaving  sentimentality  out  of  the  question,  we  will  get 
better  ships  built  in  our  own  country,  although  the  first  cost  may  be  rather  more,  aud 
we  shall  have  the  satisfaction  of  liuowing  that  the  vessels  can,  if  necessary,  be  Tised 
for  naval  purposes.  That  is  what  advocates  for  increasing  our  naval  resources  aim 
at  iu  supporting  the  subsidy  measure,  for  we  see  how  little  disposition  there  has  been 
in  this  country  to  build  up  a  navy  adequate  to  its  wants  and  dignity ;  but  the  officers 
of  the  Navy  hope  to  see  some  plan  adopted  without  delay,  by  which,  in  the  event  of 
war,  they  can  afford  the  necessary  protection  to  our  own  commerce  and  inflict  damage 
on  that  of  the  enemy. 

There  is  a  growing  feeling  in  the  country  with  regard  to  the  neglect  which  has  been 
manifested  in  building  up  our  ocean  mercantile  marine,  and  it  is  to  be  hoped  that 
this  feeling  will  spread  until  the  thousands  of  unemployed  workmen  have  a  chance  to 
earn  good  wages  aud  the  American  ocean  steamers  have  a  fair  share  of  the  $150,000,000 
annually  paid  to  foreigners  for  carrying  our  goods. 

WHAT   WE   HAVE   PAID   FOREIGN   SHIP-OWNERS. 

In  the  last  eight  years  no  less  than  one  billion  two'  hundred  millions  of  dollars  have 
been  paid  to  foreign  steam-ships,  a  sum  almost  equal  to  our  national  debt,  and  a  bur- 
den that  is  only  made  tolerable  owing  to  the  immense  resources  of  our  country.  We 
should  be  still  further  depleted  but  for  the  fact  that  we  are  sustained  by  the  tariff  on 
foreign  merchandise  and  the  protection  of  our  manufactures,  which  prevents  us  from 
being  undersold  by  foreigners  and  enables  us  to  give  employment  to  our  working 
people,  so  that  with  all  our  drawbacks  we  grow  rich. 

It  would  be  hardlj'  fair  to  accuse  the  American  people  of  a  want  of  energy  for  fail- 
ing to  revive  their  ocean  commerce  when  they  are  exhibiting  so  much  of  this  quality 
in  other  directions  in  developing  the  resources  of  the  country.  It  seems  to  be  a  law 
of  nature  that  decadence  shall  overtake  every  nation  in  the  course  of  time,  but  there 
is  no  instance  on  record  of  a  nation  giving  up  her  position  in  the  race  for  supremacy 
without  a  struggle  to  retrieve  herself.  The  decadence  which  has  afflicted  our  ocean 
carrying  trade  is  not  for  want  of  energy  on  the  part  of  our  people,  or  for  the  want  of 
^aws,  but  perhaps  from  a  plethora  of  both  which  has  hampered  those  who  would  have 
labored  for  its  revival. 

While  our  present  illiberal  policy  is  pursued  we  stand  no  chance  of  ever  becomiug 
anything  more  than  a  fifth-rate  power  upon  the  ocean.  If  we  go  on  at  the  present 
rate  our  country  will  lose  much  of  the  strength  which  it  owes  to  the  cohesion  of  its 
individual  atoms,  and,  like  a  soulless  machine  working  on  at  random,  it  will  meet 
the  fate  of  many  other  nations  that  have  flourished  for  a  time  and  then  fallen  by 
their  own  weight. 

THE  NEED  OF  A  MERCANTILE  NAVY. 

Laying  aside  all  arguments  in  favor  of  a  x^ercantile  marine,  it  is  necessary  for  the 
assistance  of  the  Navy  in  time  of  war.  Wo  need  additional  and  enlarged  markets  for 
ouv  surplus  products,  but  foreign  vessels  with  their  subsidies  are  fast  closing  all  tho 


236  TRADE    AN£>    TPtANSPORTATIOJi   BETWEEN 

channels  of  trade  against  U8,  and  our  manufacturers,  -who  would  otherwise  heir  to 
supply  the  world,  are  shut  off  by  British  rivals.  British  steam-ships  have  taken  pos- 
session of  all  the  routes  of  trade,  fostered  by  the  British  Government  and  protected 
by  British  guns.  This  is  creditable  to  the  British  Government,  which  looks  out  for 
the  interests  of  Englishmen  all  the  world  over,  and  it  would  seem  as  if  the  parent 
stock  of  the  English-speaking  race  had  more  energy  than  their  transatlantic  offspring, 
for  their  steam  mercantile  marine  not  only  monopolizes  the  foreign  trade  of  the 
United  States,  but  encircles  the  earth,  for  there  is  not  a  port  in  the  world  where  there 
is  a  chance  of  finding  a  market  for  manufactured  articles  that  a  British  steam-ship 
does  not  penetrate. 

All  that  is  left  to  us  in  the  way  of  foreign  commerce  are  the  gleanings  in  the  by- 
ways of  trade,  about  which  our  great  rivals  give  themselves  little  concern,  and  a  few 
second-rate  vessels  may  now  and  then  be  encountered  trying  to  make  a  living  under 
our  flag,  struggling  along  like  the  crows  at  Pensacola,  which  have  to  go  to  sea  to  get 
something  to  eat.  That  kind  of  commerce  is  of  little  benefit  to  a  nation.  It  is  nec- 
essary to  move  on  the  great  thoroughfares  of  the  ocean  to  have  an  extensive  trade, 
and  Great  Britain,  in  recognition  of  this  fact,  pays  her  steam  lines  liberal  subsidies. 

SHIP-BUILDING  A  PLAIN   MATTER  OF  BUSINESS. 

What  would  ten  millions  a  year  be  to  this  country  if  given  by  Congress  to  help 
build  up  our  commercial  marine?  It  would  more  than  return  the  equivalent  in  the 
shape  of  customs  dues.  It  would  more  than  pay  if  we  could  retain  in  the  United 
States  twenty  out  of  the  one  hundred  and  fifty  millions  which  are  yearly  carried  out 
of  the  country  for  freights  without  benefits  to  our  citizens.  Why  should  not  Amer- 
ican commerce  be  allowed  the  same  opportunities  that  are  afforded  the  other  indus- 
tries of  the  country,  which  have  reached  a  development  such  as  the  most  far-seeing 
never  dreamed  of?  We  are  not  tied  down  by  foreign  subsidized  competitors  on  land, 
and  therefore  our  progress  has  been  marvelous,  and  so  it  would  be  upon  the  ocean  if 
the  bonds  were  once  cut  which  confine  our  ship-builders. 

ENTERPRISE  OF  THE  FRENCH  REPUBLIC. 

We  will  take,  for  instance,  the  French  merchant  steam-ships  of  over  8,000  tons, 
which  of  late  years  have  become  a  feature  of  transatlantic  travel.  These  vessels  were 
encouraged  by  their  Government  as  a  set-off  to  the  British  steam-strips,  which  it  was 
seen  could  be  turned  into  vessels  of  war  at  short  notice  in  case  of  hostilities  with 
France,  just  as  on  the  late  occasion  the  Russians,  when  threatened  with  a  war  with 
England,  fitted  up  several  large  steamers  in  this  country  as  commerce  destroyers. 
France  pays  to  these  steamers  |14,000  for  every  round  trip  between  Havre  and  New 
York.  What  chance  could  an  American  line  have  against  such  a  competition  as  that, 
receiving  no  assistance  from  the  Government,  and  probably  not  being  paid  to  carry 
the  mails,  which  the  foreigners  would  carry  for  nothing  rather  than  an  American  ship 
should  receive  aid  from  the  Government ?  Even  giving  us  "free  ships  and  free  ma- 
terials "  would  not  surmount  the  difficulty. 

After  all,  the  amount  required  to  subsidize  a  line  of  steamers  is  not  so  very  great. 
Suppose  the  United  States  started  to  subsidize  forty  ocean  steamers  the  size  of  those 
that  cross  the  Atlantic.  Putting  the  vessels  at  8,000  tons  each,  and  allowing  30  cents 
per  ton  for  every  1,000  miles  traveled,  the  expense  would  bo  $2,400  per  1,000  miles  for 
the  3,000  miles,  or  $7,200  for  the  voyage,  return  trip  the  same,  or  $14,400  for  the 
round  trip.  Assuming  eight  round  trips  a  year  would  give  $115,200  annually  for  each 
steamer,  or  for  the  whole  forty  vessels  $4,008,000  for  a  grand  fleet  of  ships  worthy  of 
this  Repul)lic,  any  two  of  which  would  bo  worth  more  in  time  of  war  than  all  the 
cruisers  wo  have  at  present  in  the  Navy. 

Yet,  $4,.')00,000  is  no  great  anioimt  for  a  nation  to  pay  that  has  so  many  millions 
locked  up  in  her  Treasury  doing  no  good,  while  every  legitimate  opportunity  should 
be  taken  to  enlarge  the  avenues  of  trade  by  land  and  sea  in  order  that  our  country 
may  fnllill  the  grand  destiny  marked  out  for  it. 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


237 


Appendix  A  to  Part  IL 


TRANSPORTATION  FACILITIES  IN   1888. 


Statement  shoicing  the  ntnnifr  and  tonnage  of  American  and  foreign  sailing  and  steam 
vessels  entered  and  cleared  in  the  foreign  trade  at  the  principal  and  all  other  customs  dis- 
tricts from  and  for  each  island  in  the  West  Indies,  from  and  for  Mexico,  and  from  and 
for  each  country  in  Central  and  South  America  during  the  year  ending  June  30,  1888. 


Conntries  and  islands. 

Nationality  and 
motive  power. 

Customs  districts. 

Entered. 

Cleared. 

THE  WE6T  INDIES. 

Brituh  •• 

American  sail 

Foreign  sail 

Foreign  steam  — 

American  sail  — 

American  steam.. 
Foreign  sail.. 

Foreign  steam  — 
American  sail 

Now  York 

No. 
13 

1 

T071S. 

4,577 
328 
398 

No. 
7 

1 
3 

1 

Tone. 
1,918 

485 

All  other  Atlantic. .. 
All  other  Gulf 

983 
75 

Total  American.. 

16 

5,303 

12 

3,461 

1 
6 

231 

6 

1 
1 
1 

1,679 
338 
509 
882 

1,761 

Philadelphia 

All  other  Atlantic. . . 

2 

1 

540 
987 

Total  foreign 

Total  Antigua 

9 

3,408 

10 

3,519 

25 

8,711 

22 

6,989 

3 
19 

6 
69 

1 
26 

1 
7 
2 

235 
3,309 

714 
4,922 

607 
3,515 

264 
11, 806 

355 

3 
15 

6 
59 

529 

3,198 

535 

4,401 

All  other  Atlantic... 
All  other  Gulf 

29 
5 

1 

3,252 

193 

1,696 

All  other  Atlantic. . . 
Total  American  . . 

134 

25,  727 

117 

13,804 

23 

24 

5 

12 

26 

44 

3 

1 

15,  053 
5,194 
2,222 
978 
2,373 
3,023 
3,145 
1,131 

23 

3 

7 

25 

45 

4,094 

164 

502 

All  other  Atlantic 

All  other  Gulf 

2,461 
2,899 

1 

72 

Total  foreign 

Total  Bahama  Isl- 

138 

33, 119 

104 

10, 252 

272 

58,846 

221 

24,058 

Portland 

1 
6 
40 
4 
3 
6 

457 
3,292 
9,825 
2,007 
1,213 
2,407 

3 
11 
51 

6 
11 

1 

1,149 

4,411 

14,  317 

2,880 

All  other  Atlantic 

All  other  Gulf 

Total  American. . . 

177 
348 

58 

19, 201 

83 



27,  282 

THADE    AND    TRANSPORTATION    BETWEEN 

nuwu.q  the  number  and  tonnage  of  American  and  fot-eign  Si 
vessels  entered  and  cleared  in  the  foreign  trade,  e/c— Continued. 


238 

State^nent  shoiving  the  number  and  tonnage  of  American  and  fo,^eig_nsailmg  and  stmm 


-  .  ,      ,  Nationality  and 

Coantnes  and  islands.        motive  power. 


THK   WEST    INDIES— con- 
tinued. 
Bn7i«/i— Continued. 
Barbadoes— Cont'd  . 


Bermuda 


Dominica . 


Governor's  Harbor 
Grand  Cayman 


Green  Turtle  Cay 


Foreign  sail. 


Foreign  steam  . . . 


American  sail. 


American  steam . 


Foreign  sail. 


Foreign  sail 


Harbor  liland Foreign  sail 


Foreign  sail 


Customs  districts. 


Portland 

Boston 

New  York 

I'hiladilpbia 

New  Orleans 

Galveston 

A II other  Atlantic. 

All  other  Gulf 

New  York 

Philadelphia 

Now  Orleans 

All  other  Atlantic. 


Entered. 


Cleared. 


No. 
13 


Tons. 
6,009 


Totiil  foreign 

Total  Barbadoes. 


220 


Foreign  steam 


American  sail . 

Foreign  sail... 

Foreign  sail  . . 
American  sale 


Boston 

New  York 

All  other  Atlantic. 

New  York 

Philadelphia 


Total  American 


Portland 

Boston 

New  York 

Baltimore 

All  other  Atlantic. 

New  Ycrk.. 

All  other  Atlantic. 


Total  foreign  . . 
Total  Bermuda 


New  York 

All  other  Atlantic. 


Total  American 


New  York 

Total  Dominica. . 
All  other  Gulf 


18 

8,212 

14 

8,548 

8 

8,  882 

7 

3,731 

47 

23,  584 

47 

35,  542 

1 

676 

3 

2,703 

1 

1,  W5 

3 

2,014 

101,  346 


No. 


18 


Tons. 


68 

2,888 

626 


478 


4,060 


120, 547       101 


170 

260 

2,409 


55 


57 


68 


Boston 

New  York 

Baltimore 

All  other  Atlantic. . 
AU  other  Gulf 


Total  American 


New  York 

Philadelphia 

New  Orleans 

All  other  Atlantic. 


Total  foreign 

Total  Grand  Cay- 
man   


2,894 


444 
150 
911 
239 

2,750 
44,646 

3,338 


31,342 


15 


52,  478 


55,  372 


380 
105 


399 
'884 


All  other  Atlantic  . . 
All  other  Gulf 


Total  Green  Tur- 
tle Cay 


Baltimore 

All  other  Atlantic. 


Total  Harbor  Isl- 
and   


12 


594 
286 
374 
449 
351 


348 

1, 942 

1,677 

98 

55 


4,120 
442 


415 

239 

1,230 

48,704 


2,054 


347 
1,005 


344 


1,606 


3,750 


51,  030 

55,  150 

131 


125 


138 


141 

87 


228 


186 


186 


366 


757 
169 


926 


168 
189 


367 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


239 


Statement  shviciiKj  the  number  and  tonnage  of  American  and  foreign  sailing  ani  steam 
vessels  entered  and  cleared  in  the  foreign  trade,  etc. — Continued. 


Countries  and  islands. 

Nationality  and 
nioti%'o  power. 

Customs  districts. 

Entered. 

Cleared. 

THE   WEST   INDIES— con- 
tinued. 

British—  Continued. 

Jamacia — Continued. 

American  sail 

American  steam . . 

Foreign  sail 

Foreign  steam 

American  sail 

American  sail 

Foreign  sail 

Foreign  sail 

American  sail 

Foreign  sail 

Foreign  steam 

American  sail  — 

Foreign  sail 

Foreign  steam 

American  sail 

1 

Ko. 

Tons. 

No. 
3 
3 
17 

Ions. 
963 

7 
13 
13 
1 

19 
4 
0 
5 

2,824 
3,535 
4,714 
153 
5,428 
1,  532 
3,552 
1,445 

1  347 

4,941 

I'liiladelphia  

I'altimoro 

A  U  (illier  Atlantic  . . . 
All  otlier  Gulf 

22 
1 
7 
2 
4 

4,593 

366 

4  144 

538 

938 

Total  American  . . 
Boston 

68 

23, 183 

59 

17, 830 

5 

17 

3 

16 

2 

30 

96 

57 

54 

4 

3 

1 

1,226 

6,174 

1,338 

2,840 

1,281 

21,  932 

55,  039 

24,810 

11,  088 

4,136 

1,275 

873 

1 

8 

278 

New  Torlc 

2  043 

Philadelphia 

Another  Atlantic... 
All  other  Gulf 

6 

585 

11 
84 
56 

47 

4  676 

39,  723 

25, 041 

8  599 

New  Orleans 

All  other  Atlantic... 
All  other  Gulf 

Total  foreign 

Total  Jamaica 

Boston 

5 

1 

2,198 
498 

288 

132,  012 

219 
278 

83, 641 

356 

155, 195 

101,471 

1 

65 

All  other  Atlantic. . . 
All  other  Atlantic.. 

Ragged  Island 

1 

429 

1 

108 

Total  Eaggedls'd 
All  other  Atlantic. . . 
New  York 

1 

429 

1 

108 

2 

836 

1 

418 

1 
2 

259 

All  other  Atlantic. .. 

498 

Total  American  .. 

3 

757 

New  York 

3 
3 
1 
1 
1 
5 
1 

1,248 
1,034 

580 
1,035 

999 
6,989 
1,300 

All  other  Atlantic  . . . 

All  other  Gulf 

Philadelphia 

Baltimore 

New  Orleans 

All  other  Atlantic  . . . 

Total  foreign 

Total  Saint  Lucia. 
New  York 

1 

676 

15 
15 

13, 185 

1 

676 

13, 185 

4 

1,433 

Saint  Kltts  .      .  . 

1 
1 

7 

1 

192 

384 

1,070 

264 

7 

2,206 

Philadelphia 

All  other  Atlantic  . . . 
All  other  Gulf 

Total  American  .. 

1 

263 

10 

2,010 

8 

2,169 

1 
3 

1 

293 
807 
298 

2 

61 1 

Philadelphia 

All  other  Atlantic  . . . 

2 
8 

361 

New  York 

Total  foreign 

Total  Saint  Kitts . 
Now  York 

8 

7.  872 

',096 

13 

9,270 

12 

8,068 

23 

11,  280 

20 

10, 537 

Saint  Vincent 

7 
1 
5 

1  165 

Baltimore 

374 

All  other  Atlantic 

1,068 

Total  American  . . 

13 

2,607 

240  TRADE    AND    TRANSPORTATION    liKTWEEN 

Statement  altowing  the  number  and  lonnage  of  American  and  foreign  sailing  and  steam 
vessels  entered  and  cleared  in  the  foreign  trade,  i<c.— Contiuneil. 


Coantriea  and  island. 


THE  WE6T   INDIES — COn- 

tiimeil. 

Bri(i«/i— Cr>utinned. 

Saint  Vincent— Con- 
tiutied. 


Trinidad. 


Turk's  Island 


Danish : 

Saint  Croix 


Saint  Thomas 


Nationality  and 
motive  power. 


Foreign  sail . 


Customs  districts. 


Now  York 

All  otlier  Atlantic  . 
All  other  Gulf 


Entered. 


Cleared. 


A^o. 


Total  foreign 


Total   Saint  Vin- 
cent  


American  sail 


Foreign  sail 


Boston 

New  York 

Philadelphia 

Baltimore 

Now  Orleans 

Another  Atlantic. 
All  other  Gulf 


long. 
2,096 


1,050 


3, 14G 


Total  American. . 


Foreign  steam.. 


American  sail  . . 


Boston 

New  York 

Philadelphia 

New  Orleans 

All  other  Atlantic  . 

Another  (iulf 

Now  York. 

Philadelphia 

New  Orleans 


Total  foreign  . . 
Total  Trinidad. 


Foreign  sail  . . . 
Foreign  steam. 


Americiin  sail  — 

Foreign  sail 

Foreign  steam... 

American  sail  ... 
American  steam. 


Portland 

Boston 

New  York 

Philadelphia 

Baltimore 

All  other  Atlantic  . . 

Total  American  . 


3,146 


No. 
2 
1 


16 


Tons. 


334 
186 


sat 

0, 972 
7,391 
1,464 
2,541 
3,314 
2,  282 


27,348 


2,761 
14,011 
2,857 
1,232 
2, 600 
4,061 
25, 642 
3,492 
1,008 


520 


3,127 


5,680 

11,197 

1,525 

562 


2,42« 
1,790 


64 


23, 180 


57,664 


85,012 


1, 105 
7,560 
2,675 
2,177 
1,907 
2, 154 


622 

5,950 

363 


419 
'22,''738 


30, 092 


105 


63, 272 


Boston 

Now  York 

Philadt-lphia 

All  other  Atlantic. . 
Now  York 


Total  foreign 

Total  Turk's  Isl'd 

Total  British 
'West  Indies 


New  York 

All  other  Atlantic. 


Total   American . . 


New  York 

Philadelphia 

All  other  Atlantic 
Now  York 


17,  578 


2,677 
438 


851 
1,019 


1,228 


539,942 


Total  foreign  . . 
Total  Saint  Croix. 


Boston 

Now  York  

Philadelphia 

All  other  Atlantic. 

AU  other  Gulf. 

All  other  Atlantic. 

Total  American . . 


14 


2,525 
l,ll5 


3,640 


1,809 
849 

354 

2,877 


417 
2,545 
1,361 
1,145 


5,468 


4 
16 

876 


179 
757 


1,622 
^,090 


296,954 


1,964 


1,964 


2,252 


5,889 


9, 529 


1,172 


3,  437 

1,019 

47'. 


6,705 


113 
4, 233 


6.598 


8,562 


2,290 
2,560 

2,  702 
4,212 


27 


11,764 


THE    UNITED    STATES    AND    LATIN'    AMERICA. 


241 


statement  showing  the  number  and  tonnage  of  American  and  foreign  sailing  and  steam 
vessels  entered  and  cleared  in  the  foreign  trade,  etc. — Continued. 


Coantries  and  islands. 

Nationality  and 
motive  power. 

Customs  districts. 

Entered. 

Cleared. 

THE  WK8T  INDIES— con- 
tinned. 

DonwA— Continued. 

Saint  Thomas 

Foreign  sail 

Foreign  steam  — 

American  sail 

Foreign  sail 

American  .sail 

American  steam.. 

Foreign  sail 

American  sail 

Foreign  sail 

American  sail  — 

Foreign  sail 

Foreign  steam 

American  sail 

No. 

1 
2 

long. 
299 
1,007 

JVo. 

Tont. 

5 
8 

1,246 

Pliiladelphia 

5,405 

2 
19 
8 

1,004 
8,386 
5,466 

All  other  Atlantic  .. 
AH  other  Gulf 

3 

949 

0 

5,698 

1 
4 
1 

1, 403 

4,814 

498 

All  other  Atlantic. . . 
All  other  Gulf 

Total  foreign 

Total  St.  Thomas: 

Total     Danish 
West  Indies 

38 

22, 877 

22 

13,  298 

' 

54 

29. 582 

49 

25,062 

81 

39,  111 

73 

33.624 

Dutch : 

2 
3 

923 

687 

All  other  Atlantic. . . 

Total  American  . . 
All  «ther  Atlantic. . . 

Total  Bonaire 

AH  other  Atlantic... 

All  other  Gulf 

New  York 

Total  American  . . 

New  York 

5 

1,610 

1 

249 

6 

1,859 

1 
1 
18 

477 

362 

23, 053 

9 

2.531 

20 

23,692 

9 

2.531 

7 
3 

3,251 
1,403 

11 
3 

3.772 

All  other  Atlantic. . . 

Total  foreign 

Total  Curacoa — 

1,022 

10 

4,654 

14 

4,794 

30 

28, 546 

23 

7,325 

Si.   l/TArtin^fi 

5 

1 

1,791 
421 

Total  American  .. 

6 

2,212 

3 

7 

1,008 
1,823 

""h 

New  York 

Total  foreign 

Total  St.  Martin's. 
Total  Dutch  "West 

936 

10 

2,831 

6 

936 

16 

5,043 

6 

9.'i6 

52 

35,448 

29 

8,261 

New  York 

French  .- 

11 
1 
2 

1,935 
485 
516 

40 

1 
8 

7,720 

485 

All  oth»r.  Atlantic. . . 
Total  American... 

2,574 

14 

2,936 

49 

10,  779 

8 

1,874 

All  other  Atlantic. .. 

1 

678 

2 

1,663 

Total  foreign 

Total  Guadeloupe . 

1 

67H 

10 

3,537 

15 

3.614 

59 

14, 316 

14 

17 

20 

1 

6,003 

7 
5 

2 

1,316 

1,662 

758 

.5, 141 

All  other  Atlantic... 
Another  Gulf 

Total  American  . . 

6.551 
330 

14 

3,736 

52 

18,026 

S.  Ex.  54- 


-16 


242 


TRADE  AND  TRANSPORTATION  BETWEEN 


Statement  showing  the  number  and  tonnaije  of  American    and  foreign  sailing  aud  steam 
vessels  entered  and  cleared  in  the  foreign  trade,  t/c— Coutiuued. 


Countries  and  islands. 

Nationality  and 
motive  power. 

Customs  districts. 

Entered. 

Cleared. 

THE  WEST  INUIKS— con- 
tinued. 

Frewcft— Continued. 

Maitiuique — Cont'd. 

Foreign  sail 

Foreign  steam 

American  sail 

American  steam.. 

Foreign  sail 

Foreign  steam  — 

American  .sail 

American  steam.. 

Foreign  sail 

Foreign  steam 

American  sail 

AiiirriiMii  sti'Miii.. 

No. 

Tung. 

No. 
1 
2 
9 
6 

Tons. 
249 

4:13 

1 
11 
2 

690 

5,048 

687 

2,663 

All  other  Atlantic  .. 
2VII  other  Gulf   

1,522 

1 
7 

835 

Philadelphia 

8,607 

1 
2 

1 
1 

1,480 
2,815 
1,345 
1,109 

Galveston 

All  other  Atlantic  . . . 

Total  foreign    

Total  Martinique. 

Total  French 
West  Indies 

...... 

278 

19 

13, 374 

27 

14,  .'■.87 

33 

17,110 

79 

32,612 

48 

20,  724 

138 

46,  9-.'8 

28 

CO 

9 

4 

7,184 

13, 922 

2,410 

1,001 

10 
46 

2,514 

New  York 

Philadelphia 

All  other  Atlantic... 
All  otlicr  Gulf   ...   . 

9,480 

20 
1 

"21' 

5, 2-.7 
324 

IJo.ston 

8 
10 

6,240 
12,  588 

21,  1-6 

Total  American. . . 

120 

43,  405 

104 

38,  701 

17 
19 
3 
3 
6 
34 
1 

4,741 

4,615 

681 

835 

3,  GOO 

31,476 

627 

9 

18 

2,  580 

Nov.- York 

4,787 

Phii.i.k-lphia 

.\.ll  other  Atlantic  ... 

3 

708 

New  York 

Phihidelphia 

53 

1 
1 

49,316 

1,018 

120 

Total  foreign 

Total  nayti 

83 

46,  575 

85 

58,  669 

203 

89,980 

189 

97, 370 

3 

2;( 
c 

760 

5,  227 

038 

5,  300 

1 
9 
3 
2 

313 

New  York  

All  otlicr  Atlantic. .. 
New  York 

Total  American... 

Bo.ston 

2,029 
758 

i,5;;2 

34 

11,  9L'5 

348 
5,935 

15 

4,032 

2 
25 

""\2 
1 

1 
1 
3 

""  2,6  5 

379 

All  other  Atlantic  .. 

1 

178 

178 
3?0 

i 

1,715 
743 

1,006 

All  other  Atlantic. . . 

Total  foreign 

Tot  al  Sau  Doniiii  go 
Porthmd 

34 

8,919 

18 

4,608 

Spanuh  : 

Cuba 

68 

20,  844 

33 

9,240 

12 

82 

222 

219 

3 

5,  858 

40, 789 

98, 314 

101, 232 

823 

18 
48 
140 
108 
23 
3 
59 
66 

"m 

1 

8,363 
23,  3S3 

03,  357 

Philadelphia 

7!t,  L'!)7 
12  103 

1,040 

All  other  Atlantic... 
All  other  Gulf 

IlllHtOIl     

31 
43 

1 
92 

1 

6,073 
8,879 

318 

151,  891 

2,  308 

910 

20,  1(15 
17,  093 

Now  Yorlc 

143  355 

Phihidelphia 

New  Orleans  ..   

1,415 

1 

3 

165 

2,  237 

1,870 

All  other  Gulf 

Total  American . . . 

165 

113,181 

112,986 

873 

531,  206 

781 

487,  239 

THE    UNITED    .STATES    AND    EATIN    AMERICA. 


243 


Statement  showituj  the  viimher  and  tonnaye  of  American  and  foreign  sailing  and  steam 
veaaela  entered  and  cleared  in  the  foreign  trade,  etc. — Continued. 


Conntries  and  islands. 

Nationality  and 
motive  powor. 

Customs  districts. 

Entered. 

Cleared. 

WEST  INDIES — continued. 
Spanish — Continned. 

Foreign  sail 

Foreign  steam 

American  sail 

American  steam.. 

Foreign  saU 

Foreign  steam 

American  sail 

American  steam . . 

Foreign  sail 

Foreign  sail 

No. 
29 
71 
29 

Tong. 
10,  788 
34,  787 
13, 195 

No. 

7 

12 

11 

4 

1 

6 

11 

43 

144 

41 

15 

Tong. 
3  104 

4,218 
4  010 

1  842 

22 

37 
15 
73 
186 
70 

9 
13 

4 
13 

2 

14,  840 
13,  951 
6,675 
47,  .543 
147, 481 
81,842 
10,  095 

19,  808 
4,263 

20,  484 
1,940 

1  423 

All  other  Atlantic  ... 
Another  Gulf 

2,071 
2,060 
17,431 
98,  437 
48, 061 
16,  073 

Philadelphia 

Baltimore 

4 

7 
1 

5  156 

All  otber  Atlantic  . . . 
AU  other  Gulf 

Total  foreign 

Total  Cuba 

Portland 

6,53t 
1,000 

573 

427,  692 

307 

211,450 

1,446 

958,  898 

1,088 

698,  689 

Porto  Kico 

8 
40 
45 
12 

2,388 
13,  204 
10,606 

4,328 

9 
2 

52 
1 
2 

13 
2 

2,580 

646 

New  York 

14,  513 

Philadelphia.... 

500 

Baltimore 

849 

All  other  Atlantic  . . 

AU  other  Gulf 

Portland 

10 
2 
1 

1 

2,475 
820 
863 
863 

4,186 
667 

2 

1,726 

Total  American.. 
Portland 

119 

35,  547 

83 

25, 667 

10 

43 

10 

2 

10 

12 

17 

6 

1 

2 

2,421 

9,318 

2,521 

645 

2,307 

10, 453 

15,092 

4,494 

1,167 

1,610 

2 

1 
8 
1 
7 
1 
25 

345 

178 

1,725 

293 

All  other  Atlantic... 

2,401 
1,000 

New  York 

19,  005 

Baltimore 

All  other  Atlantic. . 

Total  foreign 

Total  Porto  Eico.. 

Total   Spanish 
West  Indies  ... 

Total  West  Indies. 

112 

50,  028 

45 

24, 947 

231 

85, 575 

128 

50, 614 

1,948 

1, 155, 297 

1,438 

855, 913 

MEXICO,     CENTRAL      AND 
SOUTH  AMERICA  ON  THE 
ATLANTIC. 

3,357 

1, 790,  522 

2,554 

1, 241,  680 

2 
50 

1 
22 

3 

773 

16,  849 

200 

3,033 

124 

2 
22 

533 

New  York 

7,523 

New  Orleans 

13 

8 

7 

69 

38 

2, 229 

Galveston 

All  other  Atlantic 

2,224 
1,913 

All  other  Gulf 

46 

27 

1 

11 

6,806 

36,  989 

537 

8,448 

9, 124 
52, 88» 

12 
1 

1 

8,985 
1,470 

All  other  Atlantic... 

Another  Gulf 

Total  American  . . 

1 

99 

99 

164 

73,  858 

163 

86,979 

1 
18 

1 
10 

4 

446 
6,817 

233 
1,884 
1,204 

11 

2,902 

New  Orleans 

9 

1,411 

1 
5 

284 

All  other  Gulf 

14 

7,371 

1,402 

244 


TRADE    AND    TRANSPORTATION    BETWEEN 


Stalewent  shouing  the  nimhir  and  tonnage  of  American  and  foreign  miling  and  steam 
resseh  entered  and  cleared  in  the  foreign  trade,  efc— Continued. 


Countries  and  islands. 

Nationality  and 
motive  power. 

Customs  districts. 

Entered. 

Cleared. 

MEXICO,  ETC.— continued. 

Mexico    on     the    Gulf — 
Continued. 

Foreign  steam 

American  sail 

American  steam.. 

Foreign  sail 

Foreign  steam  — 

American  steam.. 
Foreign  steam  . . . 

American  sail 

American  steam.. 

Foreign  sail 

Foreign  steam 

Araericim  sail 

American  steam. 

Foreign  sail 

Foreign  steam . . . 

American  sail 

American  steam  . 

No. 

1 

31 

2 

Tout. 

9G6 

27,287 

2,073 

No. 

Tons. 

18 
1 
1 
5 

16, 293 

New  Orleans 

1,028 
988 

All  other  Atlantic  .. 
All  other  Gulf 

Total  foreign 

Total  Mexico  on 
theGnlf 

1 
2 

738 
1,000 

3,924 

85 

49, 119 

51 

28,232 

249 

122,  977 

-214 

115,211 

3 

1 

492 
108 

4 

656 

All  other  Gulf           .' 

2 
2 

127 

Now  Orleans 

Total  American  . 
All  other  Gulf 

1 

266 

532 

5 

866 

8 

1,315 

1  1 
10 

40 

3 

3,108 

10, 130 

Total  foreign 

Total  British 
Honduras 

New  Orleans 

New  Orleans 

Total  Guatemala 
on    the  Carib- 
bean Sea 

New  York 

3 

3,108 

11 

10,170 

8 

3,974 

19 

11,485 

Gnatemala  on  the  Carib- 

5 
2 

3,480 
1,468 

bean  Sea. 

7 

4,948 

Honduras  on   the  Carib- 
bean Sea. 

1 

12 
13 
64 

164 

1,842 

963 

25, 261 

1 

10 
12 
69 

138 

New  Orleans 

All  other  Gulf 

New  Orleans 

Total  American.. 

1,458 

908 

29, 135 

90 

28, 230 

92 

31,639 

2 

38 
13 

1 

85 

3 

396 
3,383 
758 
408 
44, 127 
675 

1 
35 
10 

2 
87 

3 

198 

3,081 

All  other  Gulf 

544 
1, 142 

Now  Orleans  

All  other  Gulf 

Total  foreign 

Total   Honduras 
on  the  Carib- 
bean Sea 

45,613 
075 

142 

49,  747 

138 

51, 253 

232 

77,977 

230 

82, 892 

1 
1 

144 

Nicaragua  on  the  Carib- 

9 

bean  Sea. 

Baltimore 

All  other  Gulf 

New  Orleans 

Total  American. 

New  Orleans 

1 

1 
20 

146 

146 

13,  223 

5 
24 

674 
15, 123 

22 

13,  515 

31 

15, 950 

1 
5 
6 

7 

99 

2,577 
2,544 
2,037 

2 
7 
5 
9 

219 
5.326 

Philadelphia 

New  Orleans 

Total  foreign  . . . 

Total  Nicaragua 
on    the    ('arib- 
bean  Sea 

.    All  other  Gulf 

.    New  Orleans 

Total  American 

2,11.': 
2,619 

19 

7,257 

23 

10, 279 

41 

20,  772 

64 

26,229 

Costs  Rica  on  the  Carib- 
bean Sea. 

1 
6 

169 
3,456 

2 

6 

415 

3,456 

7 

3,625 

8 

3,871 

:| — , .^ 

THE    UNITED    STATES    AND    LATIN   AMEKlCA. 


245 


Sialement  showiiif)  the  niimher  atid  tonnage  of  American  and  foreign  sailing  and  steam 
veaaels  entered  and  cleared  in  the  foreign  trade,  etc. — Continned. 


Coantries  and  islands. 

Nationality   and 
motive  power. 

Customs  districts. 

Entered. 

Cleared. 

MEXICO,  ETC.— continued. 

Foreign  steam 

American  sail 

American  stearm. 

Foreign  sail 

Foreign  steam 

American  sail 

American  steam.. 

Foreign  sail 

Foreign  steam 

American  sail 

American  sail 

Foreign  sail 

No. 
19 

1 
15 
1 

1 

Tons. 

19,422 

538 

9,503 

1,187 

883 

No. 

15 

1 

15 

Tons. 
14,  652 

bean  Sea — Continued. 

Philadelphia 

New  Orleans 

Galveston 

All  other  Atlantic. . . 

Total  foreign 

Total  Costa  Rica 
on    the  Carib- 
bean Sea 

538 
8,199 

37 

31,633 

31 

23, 389 

44 

35, 158 

39 

27,260 

United  States  of  Colom- 

13 
26 

3 
12 

1 

5 
19 
39 

1 
10 

6,693 

4,800 

658 

32 
2 
6 
2 

1 
26 
36 

1 
10 

1 

6,077 
262 
874 

2,324 

535 

11,  849 

72,  769 

631 

6,542 
136 

Sea 

4,658 
1, 173 

All  other  Atlantic... 

All  other  Gulf 

NfW  York 

2,690 
8,078 
77,  817 

631 

New  Orleans 

AU  other  Gulf 

Total  American  .. 

Boston 

6,513 

117 

101,  999 

129 

113,  709 

2 

13 

3 

655 

12 

2,549 

3.066 
835 

3 
4 
8 
2 
27 
3 

2,794 
2,580 
6,669 
1,868 
28, 144 
2,064 

AU  other  Atlantic  .. 

All  other  Gulf 

Boston 

New  York  

1 
1 

822 
379 

32 
4 
3 

8 

3i,  624 
2  746 

Philadelphia 

Baltiiuore 

3  109 

New  Orleans 

Galveston 

All  other  Atlantic. . 
Another  Gulf 

Total  foreign 

Total  Colombia  on 
the  Caribbean  . . 

Boston 

24 

1 
4 
5 

22, 280 
1,611 
4,505 
5,214 

4,700 

24 
3 

20, 083 
1,8  8 

93 

80,  278 

94 

72,897 

210 

3" 
3 

10 

1 

12 

182, 277 

223 

180,  606 

Venezuela  »..- 

777 

459 

3,423 

286 

16, 152 

5 

"1 
31 

1,784 

Baltimore 

AU  other  Atlantic... 
New  York 

163 
40  108 

Total  American  . . 
Boston 

29 

21,  097 

37 

42, 055 

1 
9 
1 
2 
8 

144 

3,112 

164 

668 

4,491 

New  York 

4 

1,121 

Galveston 

All  other  Atlantic  . . . 
New  York 

1 

8 

338 
4,711 

Total  foreign 

Total  Venezuela.. 
Portland 

21 

8,579 

13 

6,170 

50 

29, 676 

50 

48^226 

British  Gniana 

1 

8 
37 

431 

4 
19 
6 

i,89i 
6,259 
2,662 

4  659 

New  York 

13  331 

Philadelphia  

J3 

18 

5,417 
5,388 

British Gniana. 

All  other  Atlantic... 
All  other  Gulf 

Total  American.. 

Boston , 

2 
2 

665 

876 

33 

12,353 

77 

29,  22« 

7 
12 
21 
15 
11 

2,952 
3,883 
12, 848 
6,509 
6,497 

1 

21 

3 

1 
2 

203 

New  York 

5,938 
866 

All  other  Atlantic... 
All  other  Gulf 

182 
48« 

246 


TRADE    AND    TRANSPORTATION    BETWEEN 


Statement  shoiciiig  the  number  and  tonnage  of  American  and  foreign  sailing  and  steam 
vessels  entered  and  cleared  in  the  foreign  trade,  etc. — Codtinued. 


Conntries  and  islands. 

Nationality  and 
motive  power. 

Customs  districts. 

Entered. 

Cleared. 

MEXICO,  ETC. — contiBued. 
firitish  Guiana Cont'd 

Foreign  steam 

American  sail 

Foreign  sail 

Aiiiericaneail 

Foreign  sail 

American  sail 

American  steam  . . 
Foreign  sail 

Foreign  steam 

American  sail 

Foreign  sail 

No. 
7 
2 
1 
1 

Tons. 

6,585 

1,432 

1,106 

715 

No. 
3 

Tons. 
1  179 

Total  foreign 

Total  British  Gui 

77 

42,  527 

31 

8,854 

110 

54,880 

108 

38,080 

6 
1 

2,553 
262 

8 

1 
1 

3,432 
262 

All  other  Atlantic 

259 

Total  American . . . 
New  York 

7 

2,815 

10 

3,953 

3 

565 

3 

774 

Total  Dutch  Gui- 

10 

3,380 

13 

4,727 

French  Guiana 

5 

8 

912 

1 
4 

189 
933 

1,340 

Total  American. . . 
BoHton 

5 

1,122 

13 

2,  252 

1 
1 
1 

146 

176 
281 

3 
2 

491 
335 

All  other  Gulf 

Total  foreign 

Total  French  Gui- 
ana  

3 

603 

' 

826 

8 

1,725 

18 

3,078 

Brazil 

1 

1 

16 

39 

2 

579 

1 

27 

26 

2 

15 

455 

13,  705 

12,  868 

645 

30, 135 

842 

New  York 

9,337 

19, 229 

All  other  Atlantic  . . . 

2,255 

16 

31,  339 

Total  American  .. 

71 

57,  808 

75 

63, 581 

19 

165 
2-2 

2 
21 

6 
85 
78 
89 

5,605 

64,807 

11,414 

542 

25, 162 

2,243 
42,831 
68,  HI 
98,248 

1 

56 

2 

5 

215 

New  York 

18,  871 
581 

1,569 

New  Orleans 

All  other  Atlantic  . . . 

AllotlierGulf 

If ew  York 

Baltimore 

39 
10 
22 
16 

16.  949 
6,817 
18,  207 
20, 519 

New  Orleans 

Total  foreign 

Total  Brazil 

io 

13,  022 

497 

331,  985 

151 

83,  728 

568 

389,  793 

226 

147,  309 

TJrncniaT  ...... 

1 
4 

1 

634 

1 
.5 

1 
2 

538 
3,612 

705 
2,636 

2,628 

1,230 

All  other  Atlantic 

1 

440 

Total  American  .. 

U 

i 

22 
7 
1 

IG 
2 

18 

54 

7,491 

7 

4,932 

1,477 

^        2, 365 

14,  402 

5,654 

374 

15,153 

1,078 

13,470 

48, 326 

9 
29 

7,249 

13, 985 

Pliiladelpliia 

Now  Orleans 

All  otlicr  Athiutic... 
All  other  Gulf 

7 
22 

3,466 
17,864 

THE    UNITED    STATES    AXD    LATIN    AMERICA. 


217 


statement  showivg  the  numhcr  and  tonnage  of  Anurican  and  foreign  sailhifj  and  deam 
vessels  entered  and  cleared  in  the  foreign  trade,  etc. — Coutiuued. 


Countries  and  islaiida. 

Nationality  and 
motive  power. 

Customs  districts. 

Entered. 

Cleared. 

MEXICO,  ETC.— continued. 
Uruguay — Continued 

Foreign  steam 

American  sail 

Foreie;n  sail 

Foreign  steam 

American  sail 

American  steam. . 

Foreign  sail 

Foreign  steam 

American  sail 

American  steam . . 

American  sail 

Foreign  sail 

No. 

Tons. 

No. 
1 
1 

Tung. 
1,01? 

851 

1 
1 

1,045 
1,898 

All  other  Gulf 

Total  foreign 

Uruguay  

Portland 

130 

105,  842 

69 

44,  452 

139 

113,  333 

76 

49,  384 

Argentine  Republic 

1 
25 
10 
] 
1 
1 
1 

876 

14, 104 

7,772 

1,050 

1,443 

567 

955 

23 

6 

24 

14,251 

3,533 

14,  279 

All  other  Atlantic... 
All  other  Gult 

6 
6 
1 

3,T84 
5,  829 
1,443 

Total  American  . . 
Portland  

B»-   - 

40 

26,  767 

66 

43,119 

7 

12 
30 

7 
10 

4 
73 
106 

4 

6,635 
7,703 
20,  223 
3,  9ii2 
7,935 
2,247 
44,  591 
76, 196 
4,730 

34 

18 
57 

27,  133 

It,  726 

33, 905 

Pbiladi'lphia 

New  Orleans 

All  other  Atlantic  ... 
All  olheiGult 

61 

79 

1 

3 

35,  971 

61,225 

1.270 

All  other  Gult 

3,201 

Totid  foreign 

Total  Argentine 
Rt  public 

Puget  Sound 

253 

174, 162 

253 

177,517 

293 

200, 929 

2,864 
1,101 
1,175 
2,447 

136 

5,  416 

17,  751 

708 

319 

250,  636 

MEXICO,       CENTRAL    AND 
SOUTH  AMJiRICA  ON  THK 
PACIFIC. 

Mexico  on  the  Pacifin 

5 
6 
41 
1 
8 
146 
3 

1 
6 
6 

38 
1 

12 

143 

2 

666 
1,273 

S.au  Francisco 

San  Diego 

Paso  del  Norte 

San  Francisco 

732 

728 

236 

6,664 

18, 265 

Paso  deta  orte 

Total  American.. 

472 

212 

31,  598 

209 

29,  036 

1 

604 

Willamette 

Humboldt 

San  Francisco 

Wilmington,  Cal 

San  Francisco 

2 
1 
7 
1 
1 
23 

2,411 

249 

2,608 

9 

580 

20, 470 

1 
6 

249 
3,860 

4 
23 

2,  308 
20, 470 

Total  foreign 

Total  Mexico  on 
the  Pacitic 

35 

26, 327 

35 

27, 491 

247 

57,925 

244 

56,527 

231 

San  Francisco 

1 
3 

747 
2,240 

1,494 
747 

Total  Guatemala 
on  the  Pacific  . . 

4 

2,987 

2,472 

San  Salvador 

384 

Nicaragua  on  the  Pacific. 

2 

511 

604 

1,080 

Total    Nicaragua 

4, 

2,195 

248 


TRADE  AND  TRANSPORTATION  BETWEEN 


Staiemeni  showing  the  numhir  and  tonnage  of  American  and  foreign  sailing  and  steam 
vessels  entered  and  cleared  in  the  foreign  trade,  e^c— Coutinued. 


Countries  and  islands. 

Natumality  and 
motive  power. 

Customs  districts. 

Entered. 

Cleared. 

MEXICO,  KTC— continued 
Costa  Rica  on  the  Pacific 

.    Americansail  ... 
Foreign  sail 

Americansail 

American  steam  . 

Foreign  sail 

Foreign  steam 

American  saQ 

Foreign  sail 

American  sail 

Foreign  sail 

Americansail 

American  steam.. 
Foreign  sail 

Foreign  steam 

San  Francisco 

San  Diego 

No. 

1 

Tong. 
234 

No. 

TOTU. 

1 

643 

Total  Co.sta  Rica 
on  the  Pacific  . 

Humboldt 

1 

234 

1 

643 

Unit«d  States  of  Colom- 

1 

1 

36 

298 

196 

61. 834 

bia  on  the  Pacific. 

San  Francisco 

San  Francisco 

Total  American  . . 

Paget  Sound 

Willamette 

34 

58, 152 

34 

58, 152 

1,045 

1,798 

9,735 

38 

62, 328 

1 

1 
....^ 

San  Francisco 

San  Francisco 

Total  foreign 

Total    Colombia 
on  the  Pacific. 

San  Francisco 

New  York 

2 
4 

595 
5,555 

0 
43 

12,  578 

6 

6,150 

70,  730 

44 

68,478 

Ecuador 

1 

125 

1 
1 

189 
887 

Total  American  . . 
New  York 

1 
3 

125 

2 

1,076 

1,115 

Pearl  River 

2 

1,894 

Total  foreign 

Total  Ecuador  .. 

3 

1,115 

2 

1,894 

4 

1,240 

4 

2,970 

Pern 

•2 

2,592 

New  York 

4 

3,150 

Total  American  . . 
Paget  Sound 

1 

2 

2,502 

4 

3,150 

2 

1,916 

3 

3 
3 

3,990 

984 

218 

2,431 

2,595 

Williamette 

Humboldt 

San  Francisco 

New  York 

Total  foreign 

Total  Peru 

Puget  Sound 

San  Francisco 

2 

1,916 

11 

10,218 

4 

4,508 

15 

13, 368 

1 

81 

"2 

6 
11 

4,' 070 

5,202 
8,308 

Boston 

5 

16 
4 
1 
2 

1 

4,869 
14,  890 
3,388 
837 
1,329 
1,713 

New  York 

Philadelphia 

Baltinioie 

Another  Atlantic... 
San  Francisco 

Total  American  . . 

Puget  Sound 

Willamette 

30 

27, 107 

19           17, 580 

ffhUi- Continued 

1 
1 
2 
8 

568 
1,488 
2,890 
7,077 

12           10, 680 
1             1. 230 

Oregon 

San  Francisco 

Wilmington,  Cal  ... 

7 

9 

12 

11,909 
13  595 

San  Diego 

15, 152 

Boston 

2 
19 
1 
3 
2 

1,006    . 
19.548 

747    . 
2,318    . 
1.253    . 

New  York 

Phila<lelphia 

4 

3,483 

Baltimore 

All  other  Atlantic. 
San  Francisco 

2 

2,906 

Total  foreign.... 

39 

36,  895 

49 

60,  528 

Total  Chili 

69 

64,002 

68 

78, 108 

THE  UNITED  STATES  AND  LATIN  AMERICA.       249 


Appendix  B  to  Part  II. 


REPORT  OF  HOUSE  COMMITTEE   ON  SHIPPING. 

I  submit  as  an  appendix  a  very  able  report  on  the  steam-ship  ques- 
tion, made  to  the  House  of  Representatives  on  February  12,  1884,  by 
the  honorable  Mr.  Hunt,  of  Louisiana : 

[To  accompany  bill  H.  R.  4987.] 

The  Committee  on  American  Ship-building  .and  Ship-owning  Interests,  to  whom 
•was  referred  the  bill  (H.  E.  3963)  for  the  encouragement  of  the  American  merchant 
marine,  respectfully  submit  the  following  report : 

The  bill  recommended  by  the  committee  provides  for  ocean  mail  service  between 
the  United  States  and  foreign  countries. 

Under  section  3976  of  the  Revised  Statutes  of  the  United  States,  American  vessels 
engaged  in  the  foreign  trade  are  compelled  to  carry  the  mails.  These  vessels  may  be 
detained  for  such  length  of  time  as  suits  the  Post-Office  Department,  and  are  obliged 
to  deliver  the  mails  to  the  foreign  port  to  which  they  may  be  bound  and  to  the  Post- 
Office  itself,  and  for  this  service  the  Post-Office  is  to  pay  the  vessels  the  utterly  in- 
adequate sum  of  2  cents  a  letter.  The  instances  are  stated  to  be  numerous  where 
American  vessels  have  been  detained  by  the  Postmaster-General  and  have  been  con- 
strained to  receive  the  mails  and  to  deliver  them  when  the  pay  received  for  carrying 
did  not  actually  reimburse  them  for  the  detention  and  cartage  of  the  letters  at  the 
port  of  destination.  In  the  case  of  the  Pacific  Mail  Steam-ship  Company,  it  is  stated 
that  while  their  ships  are  obliged  to  carry  the  mails  the  company  have  paid  out  more 
money  to  effect  delivery  at  the  post-office  in  the  city  of  Aspinwall  than  they  obtained 
for  mail  service  from  the  United  States  the  whole  way  from  New  York  to  Aspinwall. 

The  committee  consider  that  such  a  condition  of  things  shonld  not  be  allowed  to 
continue.  Where  the  Post-Office  Department  desires  mails  to  be  carried  along  our 
coasts,  and  where  American  vessels  are  under  the  protection  of  the  navigation  acta, 
the  Government  can  not  seize  a  vessel  and  compel  her  to  carry  the  mails,  but  must 
enter  into  contracts  and  pay  a  fair  price  in  the  premises.  The  Department  made 
some  time  ago  a  contract  with  a  small  steamer,  running  from  Galveston  to  Brashear, 
and  paid  the  steamer  $50,000  a  year.  This  is  five  times  as  much  as  is  paid  all  Ameri- 
can vessels  for  carrying  the  mails  of  the  United  States  for  the  entire  period  of  one 
year  to  every  port  in  South  America,  and  exceeds  by  about  $10,000  the  whole  amount 
paid  all  American  vessels  engaged  in  the  foreign  mail  service.  At  the  present  time 
Government  pays  for  the  carriage  of  the  mails  from  Cedar  Keys  to  Key  West,  Fla., 
131,000. 

It  is  submitted  that  there  is  no  reason  why  the  Post-Office  Department  should 
exercise  the  power  referred  to  over  vessels  in  the  foreign  trade  when  it  has  none  at 
all  given  to  it  to  control  similarly  railway  trains,  or  stage  coaches,  or  vessels  on  tha 


250         TRADE  AND  TRANSPORTATION  BETWEEN 

lakes  or  the  rivers  of  the  country,  or  going  coastwise.  The  compensation  of  the 
principal  railway  rontes  is  from  $375  to  $1,155  per  mile  per  annum,  and  that  of  the 
routes  of  smaller  importance  from  $45  to  $350  per  mile  per  annum.  Of  the  entire 
thousand  of  railroad  routes  it  is  safe  to  say  only  two  or  three  hundred  earn  the  com- 
pensation paid  by  Government,  and  it  is  likewise  true  that  in  the  great  majority  of 
cases  postage  on  the  mails  thus  carried  falls  very  far  short  of  reimbursing  the  Gov- 
ernment for  the  cost  of  service  over  them. 

The  bill  reported  is  designed  to  favor  and  establish  a  better  policy  in  regard  to 
American  steam-ship  lines  in  the  foreign  trade.  It  proceeds  upon  the  acknoTj'ledged 
fact  of  the  decline  in  American  shipping,  and  has  for  its  aim  the  restoration  of  it. 
The  passage  of  the  bill  wou]d  undoubtedly  tend  to  the  revival  of  American  ship- 
building and  ship-owning  interests.  It  would  enlarge  and  invigorate  American  com- 
merce with  foreign  countries,  and,  it  is  hoped,  set  the  flag  on  the  seas  once  more. 

To  these  ends,  affecting  as  they  do  national  prosperity,  national  character,  and 
national  independence  itself  on  the  ocean,  the  bill  reported  does  away  with  the  un- 
just discrimination  which  now  exists  between  foreign  mail  service  and  the  home 
service.  It  is  submitted,  as  has  been  already  observed,  that  there  is  no  just  ground 
for  the  discrimination  to  stand  upon,  and  it  deserves  to  be  here  added  that,  in  point 
of  fact,  throughout  the  very  thorough  examination  to  which  the  matter  has  been 
subjected,  none  at  all  has  ever  been  suggested. 

Nor  are  the  provisions  of  the  bill  obnoxious  to  the  charge  that  they  establish  a 
subsidy  for  the  payment  of  ocean  postage,  in  the  proper  or,  at  least,  the  general  un- 
derstanding of  the  term.  On  the  contrary,  instead  of  being  extraordinary,  the  pay 
provided  for  by  the  bill  will  be  found  to  be  only  ordinary,  and  in  fair  proportion  to 
the  services  to  be  rendered.  Lest  the  Government  should  be  induced  into  undue  lib- 
erality and  mere  gratuities,  the  bill  provides  for  advertising  all  contracts  for  the  car- 
riage of  the  mails,  for  their  adjudication  to  the  lowest  bidder,  and  for  the  exacting  of 
responsible  security  for  the  fulfillment  of  the  contract.  The  bill,  then,  is  one  to  give 
just  compensation  for  services  to  be  rendered.  It  is  one  to  unify  the  policy  of  the 
Government  regarding  the  carriage  of  mail  matter  on  the  ocean  to  foreign  countries, 
and  that  coastwise  and  on  the  land,  to  reduce  the  whole  to  one  system,  to  assimilate 
the  different  parts  of  it,  and  to  put  all  substantially  on  the  same  footing. 

Nobody,  as  has  been  noted,  is  to  be  found  who  will  venture  to  assail  the  policy 
wher^eby  remuneration  is  made  for  mail  service  on  the  inland  routes  of  the  United 
States.  Nobody  contends  against  that  policy  on  the  assumption  that  it  involves  the 
subsidizing  of  the  routes.  The  public  must  be  and  are  satisfied  if,  on  the  whole,  they 
are  found  to  be  self-sustaining.  In  the  foreign  mail  service,  on  the  contrary,  the  Gov- 
ernment, by  charging  5  cents  per  half-ounce  on  the  letters,  and  paying  steamers  2  cents 
per  letter  only,  makes  a  clear  profit  of  from  $400,000  to  $600,000  a  year.  The  collec- 
tion of  this  sum  is  kept  up  notwithstanding  payments,  as  already  shown,  of  far  larger 
earns  per  mile  than  the  bill  proposes  to  give  for  weekly,  fortnightly,  and  monthly 
mails  within  our  own  territory,  when  it  is  undeniably  true  that  these  mails  contain 
fewer  letters  than  the  foreign-going  steamers  would,  and  are  attended  by  none  of  the 
incidental  advantages  to  commerce,  manufactures,  and  navigation  which,  at  this 
time  of  the  world,  unquestionably  form  the  chief  value  of  lines  of  communication  by 
steam  with  foreign  countries. 

The  bill  provides  that  in  no  event  shall  the  contract  price  exceed  $1  a  nautical 
mile  out  and  back  ;  that  is  to  say,  out  of  abundant  caution,  it  provides  a  limitation 
not  to  be  found  in  any  other  branch  of  the  jiostal  service.  Again,  the  bill  requires 
that  the  aggregate  of  the  contracts  made  in  pursuance  of  it  shall  not  exceed  gross 
revenues  of  the  Post-Oflice  Department  from  the  foreign  mail  service  less  the  amount 
paid  for  transportation  of  the  mails  on  foreign  vessels  and  the  net.  amount  paid  for- 
eign administration  for  intermediary,  territorial,  and  sea  transit  of  such  mails. 

There  is  authority  for  the  remarkable  statement  that,  if  this  restriction  wore  applied 
to  and  extended  inland,  there  would  be  no  mail  at  all  in  four-fifths  of  the  States  of 
the  Union.    At  this  time  over  $000,000  more  than  are  received  are  required  to  rupply 


THE    UNITED    STATES    AND    LATIN    AMERICA.  251 

inalia  in  tho  great  State  of  Ohio ;  and  the  States  are  very  few  where  the  mall  service 
does  not  cost  the  country  a  great  deal  more  than  is  derived  in  return. 

Notwithstanding  the  premises,  however,  the  committee  have  adopted  the  limita- 
tions on  expenditures  in  behalf  of  foreign  ocean  postal  service  which  appear  in  the 
act,  so  that  the  amount  to  be  paid  for  the  service  referred  to  shall  not  exceed  a  certain 
amount ;  that  is  to  say,  tho  gross  revenue  diminished,  as  already  set  forth.  It  is  be- 
lieved that  the  sum  so  reached  will  be  an  available  aggregate,  during  the  term  of  one 
year,  of,  say,  $1,700,000.  At  tho  same  time  it  deserves  to  bo  expressly  noted  that  un- 
less the  present  American  ocean-going  i^ostal  service  should  be  doubled  only  half  this 
amount  would  be  actually  expended. 

But,  as  the  Post-Office  Department  might,  if  there  were  no  further  provision,  be 
embarrassed  in  the  case  of  a  refusal  to  conclude  a  postal  contract  or  in  case  of  im- 
possibility to  form  one,  the  bill,  in  view  of  section  4203  of  the  Revised  Statutes,  pro- 
viding for  compulsory  process  against  an  American  vessel,  has  coupled,  by  a  provi- 
sion additional  to  those  already  explained,  this  right  of  compulsion  with  the  further 
provision  that  it  shall  have  application  where  mails  are  to  be  conveyed  from  the 
United  States  to  foreign  destinations  in  the  event  only  that  the  Postmaster-General 
shall  find  it  inexpedient  or  impracticable  to  contract  for  their  conveyance  under  the 
limitations  of  the  act. 

So  far  the  report  of  the  committee  follows  the  bill.  There  are,  however,  considera- 
tions of  public  good  and  general  policy  with  which  the  report  is  naturally  connected, 
and  which,  in  the  judgment  of  the  committee,  merit  the  best  consideration  of  the 
House  and  the  country.  For  a  number  of  years  these  have  been  discussed  and  in- 
sisted upon  by  committees  preceding  the  present  one,  and  which  have  anticipated 
the  labor  which  must  otherwise  have  devolved  upon  us.  Last  in  point  of  time  is  the 
report  made  the  first  session  of  the  Forty-seventh  Congress  by  Mr.  Money,  of  Missis- 
sippi, from  the  Committee  on  the  Post-Office  and  Post-Roads.  This  report,  taking 
notice,  as  it  does,  of  those  which  have  gone  before,  and  distinguished  as  it  is  for  ac- 
curacy of  information  and  ability,  is  here  reproduced  for  the  general  assistance  it 
affords  in  examining  into,  and  correctly  judging  of,  the  ocean  mail  service,  and  like- 
wise for  the  powerful  vindication  justly  deducible  from  the  argument  it  contains  iu 
favor  of  the  bill  unanimously  reported  by  us. 

The  report  made  by  Mr.  Money  has  been  amended  only  by  bringing  down  the  sta- 
tistics to  as  late  a  date  as  practicable.    It  proceeds  as  follows : 

"  When  your  committee  considers  the  great  questions  properly  related  to  thismeasure 
and  in  some  degiee  to  be  affected  by  it,  the  question  of  the  carrying  trade,  of  a  com- 
mercial marine  as  a  nursery  for  both  the  personnel  and  material  of  a  war  marine,  of 
not  only  commercial  independence  but  national  honor  and  national  safety,  of  our 
territorial  isolation  and  consequent  absolute  dependence  in  future  wars  (which  must 
come  to  any  independent  nation)  upon  our  Navy,  both  for  pr(>tection  and  offensive 
warfare  ;  in  short,  of  all  the  far-reaching  consequences  in  our  industrial,  financial, 
and  political  future,  of  a  wise  and  liberal  development  of  our  commerce  and  the 
restoration  of  our  fighting  Navy,  and  with  it  the  commanding  attitude  we  will  assume 
among  the  nations  of  the  earth,  then  your  committee  hesitate,  impressed  with  the 
vastness  of  the  field,  discouraged  by  the  able  and  exhaustive  efforts  in  this  sphere  of 
the  most  powerful  and  patriotic  of  our  predecessors,  and  diffident  of  our  ability  to 
present  any  new  thought  or  experience  that  would  influence  you  in  tho  consideration 
of  this  measure.  The  greatest  difficulty  we  find  is  to  compress  iu  the  brief  limits  of 
a  report  the  valuable  information,  reflection,  and  experiment,  the  result  of  former 
labors  upon  this  great  question.  Indeed,  there  can  be  nothing  new  of  idea,  but  we 
can  select  from  a  great  cloud  of  witnesses  the  testimony  of  some  of  the  wisest,  most 
sagacious,  and  patriotic  statesmen  who  have  ever  identified  f  hemselves  with  tho  legis 
latiou  of  our  country.  Wo  may  proUt  too  by  the  example  of  other  nations,  and  more 
particularly  by  the  remarkable  experience  of  that  nation  from  whom  we  are  proud  to 


252 


TRADE   AND    TRANSPORTATION    BETWEEN 


derive  onr  origin,  whose  consummate  wisdom  has  illustrated  a  career  on  land  and  sea 
the  most  resplendent  in  human  annals. 

"The  melancholy  story  of  our  commercial  decline  your  committee  will  not  here 
repeat.  The  glorious  rivalry  for  supremacy  in  1840  and  the  abject  dependency  in 
1882  is  a  sharp  contrast,  so  humiliating  that  a  recital  to  this  House  could  only  be 
justified  for  the  purpose  of  amendment  and  correction  of  the  policy  which  permitted  it. 
From  the  beginning  of  this  century  for  nearly  fifty  years  our  commercial  progress  was 
a  miracle  of  energy  and  success.  We  had  outstripped  all  competitors  but  Great  Brit- 
ain, and  had  excited  her  profoundest  fears.  We  not  only  carried  the  bulk  of  our  own 
trade,  but  every  water  was  vexed  by  the  swift  keels  of  American  clippers,  contesting 
the  carrying  trade  of  the  world  with  the  "mistress  of  the  seas."  The  starry  flag  of 
the  young  Republic  saluted  every  sky  which  knew  the  red  cross  of  St.  George.  The 
British  newspapers  sounded  the  alarm  ;  the  British  Parliament  went  to  work  through 
its  committees;  every  tax  was  removed,  every  incumbrance  was  lifted  ;  the  building 
of  war  vessels  was  given  three-fourths  to  private  ship-yards;  heavy  subsidies  were 
given,  and  increased  as  competition  demanded ;  opportunely  the  practicability  of 
steam  ocean  navigation  was  demonstrated  by  America ;  England  had  the  iron  and 
coal  in  lucky  juxtaposition;  the  iron  steamer  was  constructed  and  England  again 
enjoyed  an  undisputed  supremacy.  Your  committee  are  fully  aware  that  a  reasonable 
compensation  for  ocean  mail  service  will  not  alone  rehabilitate  our  dilapidated  com- 
merce, but  it  will  begin  the  movement ;  and  we  believe  its  effects  will  be  immediate 
and  powerful,  and  if  followed  by  wise  legislation,  urgently  called  for  by  the  plainest 
principles  of  political  economy  and  self-preservation,  will  re-establish  our  Republic  as 
one  of  the  greatest  maritime  powers  of  the  globe.  Something  must  be  done  to  regain 
our  carrying  trade,  paying  now  $100,000,000  per  annum  to  foreign  ships,  to  keep  this 
vast  sum  at  home ;  about  this  there  is  no  difl'erence ;  the  dispute  is  about  methods. 
If  we  can  accomplish  this  and  at  the  same  time  revive  the  industry  of  ship-building, 
80  essential  to  our  national  glory  and  existence,  develop  our  iron  and  coal  mines  and 
utilize  our  forests,  employ  the  labor  of  our  own  citizens  and  train  skilled  workmen 
and  artisans,  sailors,  and  officers,  then  let  us  hasten  to  take  the  first  step  towards  so 
glorious  a  result  and  not  despise  even  a  small  beginning  of  a  good  work.  Every 
nation  of  the  earth  that  pretends  to  commerce  has  heavily  subsidized  ocean  mail  lines. 
They  know  that  direct,  regular,  and  swift  communication  begins  and  fosters  trade, 
and  without  it  commerce  languishes  and  dies.  This  is  the  experience  of  the  world, 
and  is  ours  the  only  nation  of  the  earth  that  shall  fail  to  learn  from  itt  As  England 
has  been  the  leading  nation  in  commerce  and  the  pioneer  in  postal  affairs,  we  present 
a  condensed  statement  of  her  treatment  of  ocean  mails.  Her  expenditure  for  railway 
and  ocean  mails,  according  to  reports  of  the  British  postmaster-general,  waa : 


Tears. 


1857  . 
1858. 
1859. 
1860. 

1861  . 

1862  . 

1863  . 
1861  . 
1865. 
1866. 
1867  . 
1808  . 
1869. 
1870, 


Railway 
mail. 

Ocean  mall. 

£422,  943 

*826,  697 

1871 

545,  073 

935,  883 

1872 

428,  647 

948,  038 

1873 

490,  223 

869,  9.-)2 

1874 

655,  046 

940,  657 

1875 

526,  966 

821,067 

1876 

538,  512 

837.  655 

1877 

565,  852 

900,610 

1878 

528,  220 

796,  399 

1879 

586,  085 

817,407 

1880 

559,  575 

783,  8-15 

1881 

578,  927 

777,  097 

1882 

583,  596 

1,  056,  708 

1883 

587,  296 

968,  494 

1884 

Tears. 


Railway 
mail. 


£595,  221 

619,  000 
644,  000 
650,  000 
667, 000 
684,  000 
692,  000 


Ocean  mail. 


£1,  047, 014 
928,  000 
945,000 
910,000 
836,  000 
780,  000 
679.  000 
566, 712 
641,  656 
665,  446 
517, 494 
504,705 
517, 494 


*  2f  ot  received  at  Pott-Oi£ce  Department  to  March  5,  1884. 


THE    UNITED    STATES    ANIJ    LATIN    AMERICA.  2^)3 

"The  British  Government  in  the  year  18G7  contracted  with  the  Peninsular  and  Ori- 
ental Steam  Navigation  Company  for  twelve  years'  service,  at  the  price  of  £'100,000  per 
aunam,  the  Government  agreeing  that  when  the  fnn^  accruing  for  dividend  in  any 
one  year  should  fall  below  the  amonnt  required  for  a  6  per  cent,  dividend  the  subsidy 
Bhonld  be  increased  by  the  amount  of  the  deficiency,  provided  in  no  case  was  the 
Government  to  pay  more  than  £500,000  per  annum  ;  if  the  sum  rises  above  the  sum 
required  for  8  per  cent.,  then  the  Government  tq  receive  one-fourth  the  excess.  The 
Postmaster-General  explains  this  heavy  subsidy  in  this  language:  'The  increase  of 
expense  of  this  service  will  be  considerable,  but,  looking  at  the  great  competition  to 
which  the  Peninsular  and  Oriental  Company  is  now  exposed  by  its  passenger  trade, 
not  only  by  the  French  line  of  steam  vessels,  but  also  by  the  large  number  of  military 
officers  and  other  Government  passengers  now  carried  by  the  steam  transports  lately 
built  by  the  admiralty,  I  am  of  the  opinion  that  the  terms  of  the  nefv  contract  are  as 
favorable  as  could  be  expected.'  In  1870  the  pay  was  fixed  at  £450,000.  In  1867  the 
contract  with  the  Royal  Mail  Steam  Packet  Company  was  about  to  expire.  The  com- 
pany sustained  great  losses  by  reason  of  hurricanes  and  earthquakes  at  St.  Thomas. 
The  Government  renewed  the  contract  for  five  years,  for  the  reason  given  by  the  Post- 
master-General, as  follows:  'Unwilling  at  such  a  moment  to  invite  competition  or 
withhold  a  concession  without  which  the  company  might  have  succumbed  to  its 
losses,  the  late  government,  after  much  consideration,  renewed  the  contracts,  in  the 
case  of  the  West  India  service  for  five  years,  and  in  the  case  of  the  Brazil  service  for 
four  years.'  The  two  contracts  were  for  more  than  $1,000,000  per  annum.  That  is  the 
way  Great  Britain  builds  up  her  great  ocean  lines  and  carries  her  commerce  to  every 
mart.  In  1862  the  Government  gave  the  Cape  of  Good  Hope  line  $25,000  in  premiums 
for  running  under  tivie.  Having  thoroughly  established  her  lines  to  the  United  States 
in  1877,  Great  Britain  paid  only  ocean  postage,  but  when  it  was  represented  that  that 
pay  was  not  sufficient,  the  Government  almost  doubled  the  pay  to  the  Cunard,  Inman, 
and  White  Star  Companies.  Last  year  Great  Britain  paid  nearly  $3,500,000  to  ocean 
mail  lines. 

"Great  Britain,  in  1839,  gave  the  Cunard  line  $425,000;  that  not  being  sufficient, 
the  pay  was  increased  in  1840  to  $550,000.  Cunard  failed  to  run  his  ships  profitably 
at  that  pay,  and  then  his  pay  was  advanced  to  $725,000.  He  increased  the  size  of  his 
ships  in  1852,  and  his  pay  was  raised  to  $855,000  per  annum. 

"  In  1846  Great  Britain  paid  the  line  of  steame'-s  from  Southampton,  via  Jamaica, 
across  the  Isthmus  of  Panama  and  down  to  Valparaiso  $1,500,000  per  annum. 

"England's  way  has  been  crowned  with  a  wonderful  success.  The  opponents  ot 
this  measure  have  said  we  can  not  expend  as  much  money  as  England  has  done  and 
will.  We  need  not  spend  as  much,  but  it  is  shameful  to  retire  from  the  field.  When 
England  succeeds,  these  croakers  say  let  us  abandon  the  contest  and  surrender  our 
carrying  trade  ;  but  when  Stevens  beat  with  the  America  the  British  yachts  at  Cowes, 
that  yacht  race  was  made  the  subject  of  investigation  by  the  House  of  Commons. 
National  pride  should  be  a  factor  in  this  problem. 

"  American  ships  are  compelled  to  carry  our  mails  whether  they  wish  to  or  not,  but 
we  never  compel  a  steam-boat,  railway,  or  stage-coach  to  carry  them  at  all,  and  when 
they  do,  they  are  well  paid  ;  so  are  the  steam-ship  lines  in  our  waters.  The  law  upon 
ocean  mail  transportation  is  as  follows : 

"  '  The  master  of  any  vessel  of  the  United  States,  bound  from  any  port  therein  to  any 
foreign  port,  or  from  any  foreign  port  to  any  port  in  the  United  States,  shall,  before 
clearance,  receive  on  board  and  securely  convey  all  such  mails  as  the  Post-Office  De- 
partment, or  any  diplomatic  or  consular  agent  abroad,  shall  offer ;  and  he  shall  promptly 
deliver  the  same,  at  the  port  of  destination,  to  the  proper  officer,  for  which  he  shall 
receive  tioo  cents  for  every  letter  so  delivered;  and  upon  the  entry  of  every  such  ves- 
sel returning  from  any  foreign  port,  the  master  thereof  shall  make  oath  that  he  has 
promptly  delivered  all  the  mail  placed  on  board  said  vessel  before  clearance  from  the 
United  States;  and  if  he  fail  to  make  such  oath,  the  vessel  shall  not  be  entitled  to  the 
privileges  of  a  vessel  of  the  United  States.' — (Revised  Statutes,  section  397<3.) 


254 


TRADE    AND    TRANSPORTATION    BETWEEN 


"Tt«  following  table  will  show  bow  this  law  operates  against  the  American  »bip 
engaged  in  the  foreign  trade : 

Hail  services  from  the  United  States  to  foreign  countries  for  fiscal  year  ended  JuneZO,  1883, 

by  vessels  of  American  lines. 


Lilies  and  servic«. 


Nantica]  miles 

of  service  one 

way.* 


Amoant  of 
mail  pay. 


American  line  :  Philadelphia  to  Queenstown 

Pac-ifl  Mail  Line:  New  York  to  ARpiuwall,  San  Francisco  to  Panama, 
San  Francisco  to  Yokohama,  San  Francisco  to  Ilawaii,  San  Francisco 
to  Australia  and  New  Zealaii<l 

New  York,  Havana,  and  Mexicnn  Mail  Line: 

New  York  to  Cuba,  Porto  Kico,  and  Mexico 

New  Orleans  to  Vera  Ciiiz,  Mexico 

United  States  and  Brazil  Mail  Line:  Newport  News  to  Rio  de  Janeiro.. 

New  York  and  Cuba  Mail  Line :  New  York  to  Cuba,  Porto  Kico,  and 
Bahamas...... , 

Red  "D"  Line:  New  York  to  Venezuela  and  Cura9ao 

Morgan  Line :  New  Orleans  to  Cuba  and  Mexico,  Key  West  to  Cuba,  Gal- 
veston to  Mexico 

Clyde  Line:  New  York  to  Hayti,  San  Domingo,  and  Turk's  Islands 

Nassau  Mail  Line:  New  York  to  Bahamas  and  Cuba 

Briti.sli  Honduras  Mail  Packet  Line:  New  Orleans  to  Belize,  Republic  of 
Honduras,  aud  G  uatemala 

Otere's  Pioneer  Line:  New  Orleans  to  Republic  of  Honduras 

California  and  Mexican  Line:  San  Francisco  to  Mexico 

VariouM  lines:  San  Francisco  to  Hawaii 

Steamer  Chase:  New  Orleans  to  Mexico 

Various  lines:  Key  West  to  Cuba  

Pacific  Coast  Line :  San  Francisco  to  Victoria,  British  Colombia 

Oregon  R.  R.  and  Navigation  Co. :  Port  Townsend,  Wash.  Ter.,  to  Vic- 
toria, British  Columbia 

Steamer  Emmett:  Eastport,  Me.,  to  Campobello,  New  Brunswick 

Boston,  Halifax,  and  Prince  Edward  Island  Line:  Boston  to  Halifax, 
Nova  Scotia 

Nova  Scotia  Line:  Boston  to  Tarmonth,  Nova  Scotia 


Total. 


100, 008 


308, 622 

117,  300 
10, 120 

46,  800 

85,800 
41,  800 

47,  488 
27,  600 
18,  000 

68,  000 
38,  000 

27, eoo 


1,840 

'33,546 

420 


23,000 
28,  400 


1,  024,  338 


$3,  000. 37 


21,  559.  34 

9,  078.  41 
640.55 

1,  222. 46 

2,  850.  31 
893. 10 

700.  82 
351.  34 
310.90 

378. 7» 
34.44 

358. 44 

279.  76 
10.60 
30.23 

387.64 

949.30 
19.37 

52.56 
224.82 


43, 339. 53 


•  The  outward  maUs  only  being  paid  for,  the  distance  one  way  only  is  here  given. 

"  Contrast  with  this  showing  the  following,  which  gives  the  amount  paid  annually 
to  five  lines  which  carry  the  mails  in  the  coasting  trade : 


Lines. 


No.  ships. 


Miles  trav- 
eled. 


Mail  pay. 


Cedar  Keys  to  Key  West,  Fla 

San  Francisco  to  Portland,  Oregon. 

Port  Townsend  to  Sitka 

Portland  to  Astoria 


48.  880 
60,  ()80 
16,  020 
54,880 


Total. 


189, 460 


$31,000 

22,  000 

16,  000 

6,000 


74,  000 


"  France  subsidizes  as  follows  : 

Francs. 

Line  to  China,  Japan,  and  India 8,573,024 

Lino  to  South  America 3,644,  000 

Line  to  Mediterranean 4, 382, 2(53 

Line  to  Mod  iterranean 375, 000 

Line  to  West  Indies  and  Mexico 3,  i)ij3,  2.57 

Line  to  the  United  Stales 2,361,348 

Line  to  English  Channel 100,000 


Total  annual  pay 


23, 338, 802 


$4, 677, 77a 


Till':    UNITED    STATES    AND    LA'I'IN    AMERICA.  255 

"In  addition,  France  lias  a  bounty  for  sbip-building  and  rnnning: 

•'  'There  will  bo  paid  for  all  steam  and  sailing  vessels  launched  after  the  passage  of 
this  bill,  excepting  iisbing- vessels,  yjichts,  and  steamers  now  receiving  a  subsidy,  aa 
follows : 

"  'Thirty  cents  per  ton  for  every  mile  run,  to  he  reduced  each  year,  as  followB! 

"'One  and  a  half  cents  per  ton  for  wooden  vessels. 

"'One  and  a  half  cents  per  ton  for  composite  vessels. 

'"One  cent  per  ton  for  iron  vessels. 

'"The  vessels  to  be  used  by  the  Government  in  case  of  war;  and  the  above  pre- 
mium to  be  increased  15  i)cr  cent,  where  designs  are  submitted  to  and  api)roved  by 
the  navy  department. 

'"Where  matcriiils  are  imported  for  the  construction  of  vessels,  there  will  be  al- 
lowed to  ship-builders,  in  place  of  the  duties  paid  upon  materials — 

For  every  registered  ton  of  iron  or  steel $12 

For  wooden  vessels  of  over  290  tons 4 

For  composite  vessels 8 

For  wooden  vessels  under  200  tons 2 

'"For  all  the  pumps,  machinery,  etc.,  required,  $2.40  for  every  220  pounds.  All 
vessels  transformed  to  increased  tonnage  after  the  passage  of  this  bill  will  be  allowed 
the  same  premium  as  for  new  vessels  on  the  increased  tonnage.' 

"  To  illustrate  this  new  French  bounty  law,  apply  it  to  a  3,000-ton  iron  ship.  The 
bounty  would  be — 

On  building: 

Weight  of  iron  in  hull,  1,800  tons,  at  $12 $21,600 

Weight  of  machinery,  500  tons,  at  $24.43 12,615 

34, 215 

•'Then  there  is  allowed  30  cents  per  ton  for  every  1,000  miles  run,  after  being  put 
in  service,  for  first  year,  diminishing  1  cent  per  mile  each  year  thereafter. 

"Presuming  the  above  3,000- ton  steamer  makes  ten  trips  from  Havre  to  New  York  per 
annum,  or  60,000  miles,  this  gives  for  first  year's  service  as  follows : 

3,000  tons,  at  30  cents  =  $90  X  60  =  $54, 000. 
And  second  year's  service 52, 000. 

"This  will  expire  entirely  at  the  end  of  thirty  years. 

"Adding  the  bounty  and  the  allowance  per  mile,  the  law  would  grant  the 3, 000- ton 
ship  the  first  year  $89,015.  The  French  Government  for  this  requires  in  return  the 
carrying  of  its  mails,  and  the  right  to  use  the  ships  in  case  of  war,  taking  them  at  a 
fair  valuation. 

"  Bismarck,  the  most  extraordinary  genius  of  this  age,  speaking  of  the  French  law 
with  the  keen  criticism  of  a  rival  power,  said  it  would  'create  for  France  a  powerful 
navy  which  may  prove  of  effective  service  in  time  of  war,'  and  'the  merchant  marine 
is  the  handmaid  of  all  other  industries,  of  agriculture  and  commerce.  On  the  day 
when  the  freight  trade  is  given  over  to  foreigners  a  mortal  blow  will  be  given  to  all 
the  industries  of  the  country.  These  enterprises  can  not  dispense  with  Government 
aid,  and  this  has  always  beeu  afforded  in  a  productive  manner  as  soon  as  it  was  a 
question  of  paving  the  way  for  our  traffic  in  distant  markets.  England  has  given  the 
example  of  using  mail  steamers  as  the  pioneers  for  the  creation  or  expansion  of  com- 
mercial relations.  It  is  deserving  of  serious  consideration  whether  under  the  circum 
stances  German  shipping  and  commerce  can  hope  for  further  prosperous  development 
as  against  the  competition  of  other  nations  aided  by  pubUo  funds  and  assistance.' 

"Italy  subsidizes  annually  $3,228,811 ;  Brazil,  $1,700,000 ;  Japan,  $500,000.  The  two 
feeble  colonies  of  New  Zealand  and  New  South  Wales  are  now  paying  the  Australia 
and  San  Francisco  line  $4o0,000  per  annum ;  of  this  we  are  greatly  the  beneficiaries,  the 


256  TRADE    AND    TKAXSPOKTATION    JiETWEEN 

balance  of  trade  with  those  colonies  being  nearly  $4,650,000  in  our  favor.  Can  it  be  that 
all  other  nations  are  mistaken  in  the  policy  of  paying  fair  compensation  for  ocean  mail 
carriage,  and  that  we  only  arc  right  ?  The  results  show  the  contrary.*  But  the  present 
policy  has  not  always  been  held  by  us  ;  our  policy  has  been  at  other  times  either  more 
sagacious,  more  patriotic,  more  just,  or  more  liberal  than  now.  A  Democratic  admin- 
istration, backed  by  the  ablest  men  of  all  parties,  once  dealt  fairly  and  liberally  with 
our  ocean  mail  carriers.  Successive  committees  of  both  Houses  have  recommended 
tbis  measure  in  substance ;  Presidents  have  recommended  it  in  their  messages,  and 
Postmaster-Generals  in  their  reports;  commercial  and  industrial  bodies  in  their  con- 
ventions have  declared  the  true  policy  of  the  Government.  They  have  given  no  un- 
certain sound.  The  speeches  of  the  great  statesmen  of  the  past  come  down  to  us,  if 
not  with  solemn  authority  at  least  with  persuasive  power,  urging  us  to  take  this 
among  other  means  to  re  establish  our  commerce  upon  the  ocean,  from  which  it  is 
disappearing,  before  efforts  wisely  and  persistently  supported  by  foreign  powers. 

"In  his  celebrated  report  on  commerce  Mr.  Jefferson  wisely  said  :  'Our  navigation 
involves  still  higher  consideration  ;  as  a  branch  of  industry  it  is  valuable,  but  as  a 
resource  of  defense  it  is  essential.  The  position  and  circumstances  of  the  United 
States  leave  them  nothing  to  fear  from  their  land-board,  and  nothing  to  desire  beyond 
their  present  rights.  But  on  the  sea-board  they  are  open  to  injury,  and  they  have 
then,  toO;  a  commerce  which  must  be  protected.  This  can  only  be  done  by  possessing 
a  respectable  body  of  citizen  seamen  and  artists  and  establishments  in  readiness  for 
ship-building.  If  particular  nations  grasp  at  undue  shares  of  our  commerce,  and 
more  especially  if  they  seize  on  the  means  of  the  United  States  to  convert  them  into 
aliment  for  their  own  strength  and  withdraw  them  entirely  from  the  support  of  those 
to  whom  they  belong,  defensive  and  protecting  measures  become  necessary  on  the 
part  of  the  nation  whose  marine  resources  are  thus  invaded,  or  it  will  bo  disarmed  of 
its  defense,  its  productions  will  be  at  the  mercy  of  the  nation  which  has  possessed 
itself  exclusively  of  the  means  of  carrying  them,  and  its  politics  may  be  influenced 
by  those  who  command  its  commerce.  The  carriage  of  our  own  commodities,  if  once 
established  in  another  channel,  can  not  be  resumed  in  the  moment  we  desire. 

"  '//  we  lose  the  seamen  and  artiats  whom  it  now  employs,  we  lose  the  present  means  of 
marine  defense,  and  time  tvill  be  requisite  to  raise  up  others,  when  disgrace  or  losses  shall 
bring  home  to  our  feelings  the  evils  of  having  abandoned  them.' 

"  The  Committee  on  Post-Office  and  Post-Roads  in  their  report  said: 

"  'The  British  Government  contracts  with  its  lines  of  steam-ships,  and  pays  them 
large  subsidies  for  carrying  its  mails,  while  the  United  States  compels  its  ships  to 
carry  its  mails,  and  will  not  allow  a  ship  its  clearance  papers  until  she  has  the  United 
States  mail  on  board,  and  then  allows  her  only  the  ocean  postage  of  two  cents  on  a 
letter,  which  is  a  dead  loss  to  the  ship. 

'"The  stage-wagons  carrying  the  inland  mails  receive  an  average  of  $28  per  mile 
of  route  per  annum.  The  steamers  on  the  river  an.l  along  the  coasts  receive  an  average 
of  $43.50  per  mile  per  annum. 

"  '  The  railroads  receive  an  average  of  $1:51  per  mile  per  annum,  while  the  more  im- 
portant roads  receive  $538,  $81)7,  $922,  $979,  $1,155  per  mile  of  road  per  annum  ;  and, 
on  the  vast  majority  of  these,  the  i)08tage  would  not  pay  the  cost.  On  only  a  few 
hundred  of  the  9,900  routes  would  the  carrier  consent  to  do  the  work  for  the  postage, 
yet  the  merchant  vessels  are  compelled  to  carry  the  mail  for  the  ocean  postage,  which 
in  a  very  few  cases  will  amount  to  as  much  as  $1  per  mile  per  annum.  A  company 
sending  a  magnificent  and  costly  vessel  over  a  stormy  ocean  for  3,000  or  4,000  miles 
receives  less  for  carrying  the  mail  than  a  stage-coach  running  on  an  unimportant  in- 
land route.' 

"  The  losses  sustained  by  the  United  States  by  the  decay  of  American  shipping  is 

"Appendix  "A"  is  added,  being  a  report  by  Consul  Grain,  of  Milan,  on  the  bistory 
and  extent  of  subsidies  granted  to  ocean  steam-sliips  by  various  countries. 


THE    UNITED    STA I ES    AND    LATIN    AMERICA.  257 

tbu8  briefly  ami  clearly  stated  by  tlie  N(  ^v  York  Cbamber  of  Commerce,  Jnmiary  16 

1882: 

"To  the  Chamber  of  Commerce: 

"' Your  committee,  appointed  to  take  into  consideration  the  subject  of  'American 
Shipping '  engaged  in  foreign  trade,  for  the  purpose  of  recommending  such  legislation 
as  would  tend  to  its  revival  and  improvement,  respectfully  report : 

"  'That  the  actual  state  of  American  shi|)ping,  and  its  tendency  to  a  still  more  ab- 
ject condition,  seems  to  be  admit'ted  bj-  all  persons  and  parties,  and  your  committee  is 
cheered  to  find  an  almost  unanimous  desire  that,  by  some  process  and  action,  it  shall 
be  revived.  And,  further,  without  eutering  upon  the  specific  remedy,  it  seems  to  be 
admitted  on  all  sides  that  the  remedy  is  only  to  be  found  in  some  kind  of  legislative 
action  by  the  Congress  of  the  United  States.  Your  committee  incline  to  add  to  this 
legislation  by  the  States  in  addition.  In  listening  to  the  various  opposing  opinions 
and  sentiments  which  have  been  brought  before  them,  your  committee  have  been 
struck  with  the  much  more  extended  nature  of  the  evils  which  arise  from  a  loss  of 
our  mercantile  uiariue  than  would  occur  to  one  who  has  not  studied  and  pondered  on 
the  subject.  They  would  briolly  enumerate  some  of  tie  principal  ones,  for  the  best 
remedies  will  be  those  which  correct  all  or  the  most  of  these,  and  it  is  quite  certain 
that  some  of  the  proposed  remedies  will  not  alfect  or  correct  them  fully.  We  will 
classify  these  as  direct  and  consequential,  as  follows : 

"*  DIRECT. 

"  '  1.  The  loss  to  the  country  of  the  freights  earned  by  the  vessels,  now  estimated 
as  the  proportion  actually  paid  to  foreign  vessels,  at  least  to  the  sum  of  .$100,000,000 
per  annum. 

"  '  2.  The  loss  to  the  country  of  the  industry  of  building  and  repairing  the  additional 
tonnage  that  may  be  required  for  this  carryiug  trade. 

*' '  3.  The  loss  to  the  nation  of  its  naval  militia,  which  its  mercantile  marine  should 
constitute. 

"'4.  The  loss  of  an  important  and  valuable  commission  business,  and  the  large 
trade  and  industries  of  ship-chandlers,  sailmakers,  shipsmiths,  and  nnmeroas  articles 
used  in  the  construction  and  running  of  vessels. 

"  '  INDIRECT   OR   CONSEQUENTIAL. 

"  *  1.  The  loss  of  ship-building  establishments,  which,  with  the  gradual  withdrawal 
of  orders,  languish  and  are  finally  closed,  and  thus  even  the  proper  facilities  for  per- 
manent repairs  be  lost,  and  in  time  of  war  leaving  us  crippled  and  helpless,  until  such 
establishments  could  be  created;  and  likewise  the  loss  of  the  educated  ship-buildera 
attached  to  such  establishments. 

"'2.  The  loss  of  educated  seamen.  That  this  is  now  taking  place  cannot  be 
doubted,  and  that  it  will  continue  and  increase  cannot  be  denied.  American  boys 
will  not  see  the  same  attraction  and  inducement  to  ship  under  foreign  flags,  where 
the  life,  regulations,  laws,  and  puuishments  are  all  foreign,  and  without  appeal  to  his 
own  authorities. 

"  '3.  The  loss  of  educated  managers  of  ships  and  lines  of  vessels.  A  moment's  reflec- 
tion will  show  that  it  is  an  educated  talent  to  bo  able  to  eflSciently  man,  equip,  and 
manage  vessels.  One  who  understands  the  business  would  make  a  line  a  success, 
under  the  same  conditions  that  another  equally  honest  but  without  experience  would 
fail  under. 

"  '  4.  The  loss  of  a  very  important  amount  of  insurances,  not  only  on  the  vessels  and 
freights,  but  also  on  cargoes  frequently  purchased  by  the  owners  to  supply  freights 
when  markets  are  dull,  the  insurances  on  which  generally  are  effected  at  the  home 
port  of  the  vessel.  * 

S.  Ex.  54 17 


258         TRADE  AND  TRANSPORTATION  BETWEEN 

"  '  It  will  thus  be  seen  that  the  mere  holdiug  of  vessels  by  American  capitalists  will 
not  alone  meet  the  requirements  of  the  case. 

"  '  It  is  claimed  by  all  parties  and  denied  by  no  one  that,  in  addition  to  the  differ- 
euce  in  the  first  cost  of  vessels  in  their  construction  and  of  the  running  expenses,  such 
as  cheaper  wages,  provisions,  and  insurance,  American  ship-owners  are  burdened  with 
certain  existing  laws  and  regulations  not  exacted  or  required  in  other  countries,  and 
hence  that,  even  if  the  cost  could  bo  equalized,  the  expenses  attendant  on  the  laws, 
&c.,  referred  to  would  render  the  effort  to  compete  useless.' 

"  The  New  York  Tariff"  Convention  of  November  'M,  1881,  passed  resolutions,  from 
which  we  quote : 

'"  Our  Government  should  treat  American  mail-carriers  on  the  sea,  going  to  foreign 
ports,  exactly  as  it  does  its  mail-carriers  on  the  land,  making  no  distinction  between 
ft,  ship  in  the  foreign  trade  and  a  railroad  car  or  a  coast  steamer.  Our  foreign  carry- 
ing trade  should  be  built  up  through  the  adoption,  by  our  Government,  of  a  policy 
similar  to  that  by  which  Great  Britain  and  other  European  Governments  have  built 
up  their  merchant  marine — a  policy  broad,  comprehensive,  and  equitable,  such  a 
policy  as  will  induce  the  investment  of  capital  in  ships  built  iu  American  ship-yards 
and  by  American  labor.  This  convention  urges  upon  Congress  the  importance  of 
taking  immediately  such  wise  legislative  action  as  this  great  national  interest  de- 
mands to  bring  it  again  to  that  i)osition  which  is  due  to  it  and  the  nation  itself.' 

"The  National  Tariff  Convention,  held  at  Chicago,  November  15,  1881,  adopted  reso- 
lutions on  the  upbuilding  of  our  commercial  marine,  from  which  we  quote  the  fol- 
lowing : 

"  '2.  The  United  States  should  make  American  vessels  the  carriers  of  American  mails 
at  rates  proportionate  to  the  value  of  the  service  performed  without  regard  to  the 
rates  at  which  foreign  vessels  subsidized  by  their  own  Governments  may  be  willing 
to  carry  them.  [Applause.]  3.  The  United  States  should  regard  an  American  com- 
mercial marine  as  a  basis  of  an  American  Navy  and  an  integral  element  of  our  Ameri- 
can nationality,  and  should  so  discriminate  in  favor  of  American  vessels,  especially 
of  those  which  are  striving  to  extend  American  trade  to  new  countries,  as  would 
secure  to  them  a  fair  and  lucrative  share  of  the  world's  carrying  trade  proportionate 
to  the  dignity  and  power  of  the  country  in  other  respects.' 

"  The  national  convention  of  ship-owning  and  other  commercial  bodies,  held  at  Bos- 
ton, October,  1880,  passed  the  following  resolution  : 

"  '  Tha*i  the  Government  assist  in  the  establishment  and  maintenance  of  American 
lines  of  steam-ships  built  and  owned  in  the  United  States,  from  our  own  ports  to  im- 
portant foreign  ports,  by  the  payment  of  proper  sums  of  money  for  the  transporta- 
tion of  mails  to  such  lines  as  will  render  the  most  effective  service  ;  and  without 
which  substantial  aid  such  lines,  so  important  to  the  progress  and  prosperity  of  the 
nation,  cannot  exist  in  competition  with  the  subsidized  steam  tleets  of  other  coun- 
tries.' 

"  *  The  enlightened  policy  by  which  rapid  communication  with  the  various  distant 
parts  of  the  globe  is  established  by  means  of  American-built  sea-steamers,  would  find 
an  ample  reward  in  the  increase  of  commerce  and  in  making  our  country  and  its  re- 
sources more  favorably  known  abrojid  ;  but  the  national  advantage  is  still  greater — 
of  having  our  naval  officers  made  familiar  with  steam  navigation,  and  of  having  the 
privilege  of  taking  the  ships  already  equipjjed  for  immediate  service  at  a  moment's 
notice — and  will  bo  cheaply  purchased  by  the  compensation  to  be  paid  for  the  trans- 
portation of  the  mail  in  them,  over  and  above  the  postages  received.'  (President 
Polk's  annual  message,  December  7,  1847.) 

"  '  Our  farmers  and  planters,  under  a  more  just  and  liberal  commercial  policy,  are 
finding  new  and  profitable  markets  abroad  for  their  augmented  products. 

"  '  The  contracts  for  the  transportation  of  the  mail  in  steam-ships  convertible  into 
war  steamers  promise  to  realize  all  the  benefits  of  our  commerce  and  to  the  Navy 
Mhich  were  anticij)ated.    The  first  steamer  thus  secured  to  the  Government  was 


THE    UNITED    STATES    AND    LATIN    AMERICA.  259 

launched  in  Jjinuary,  1047.  There  are  now  bcvcu,  and  in  another  year  there  will 
probably  \>c  not  loss  than  sovonteen  afloat.  While  this  great  national  advantage  ia 
secured  our  social  and  commercial  intercourse  is  increased  and  promoted  with  Ger- 
many, Great  Britain,  aud  other  parts  of  Europe.'  (President  Polk's  annual  message, 
December  T),  1848.) 

"  General  Grant  recoumiended  this  measure  in  his  annual  messagosof  1870  and  1871. 

"  '  Nothing  is  clearer  than  that  it  is  for  the  interest  of  this  Government  to  employ 
American  in  preference  to  foreign  steamers  for  the  conveyance  of  our  mails,  if  they 
can  be  secured  on  the  terms  authorized  by  law  ;  but  whether  this  may  bo  done  is  a 
matter  of  doubt.'     (Aaron  V.  Brown,  Postmaster-General's  report,  December  4, 1855.) 

"'As  regards  the  superiority  of  the  English  ocean  conveyance,  so  long  as  they  are 
enabled  by  large  subsidies  to  keep  vessels  of  great  speed  regularly  in  the  service  the 
year  round,  they  will  continue,  as  heretofore,  to  carry  much  the  largest  part  of  the 
mails,  and  will  of  course  continue  to  realize  a  correspondingly  large  proportion  of  the 
sea  postage.'    (J.  Holt,  December  1,  1860.) 

"Mr.  Cresswell  also  recommended  it. 

"'In  the  absence  of  a  direct  mail  service  to  Brazil,  all  correspondence  for  that 
country  and  adjacent  South  American  States  has  to  take  the  circuitous  route  via 
England  and  thence  by  British  mail  packets  to  Rio  de  Janeiro,  thus  involving  very 
serious  delays. 

!' '  The  maintenance  of  one  or  more  lines  of  direct  mail  steam-ship  communication 
with  Brazil  is  very  important  to  our  postal  and  commercial  interests.  While  there 
exists,  at  present,  no  regular  line  of  mail  steamers  inlying  between  this  country  and 
Brazil,  I  am  credibly  informed  there  are  as  many  as  ten  lines  of  direct  steamers — 
English,  German,  and  French — plying  regularly  between  European  and  South  Ameri- 
can ports. 

"  '  The  fact  that  but  one  line  of  steamships  carrying  our  Hag  is  employed  in  convey- 
ing the  United  States  mails  across  the  Atlantic,  and  none  whatever  to  South  America, 
is  humiliating  to  the  just  pride  of  every  American  citizen. 

"  'As  a  matter  of  national  pride,  as  an  aid  to  the  revival  of  American  commerce,  and 
as  a  means  of  supplying  an  efficient  steam  marine,  available  for  immediate  use  by  the 
Government  in  case  of  war,  provision  should  he  made  for  the  transportation  of  our 
mails  on  important  ocean  routes  in  steam-shii^s  officered  and  manned  by  our  own  citi- 
zens and  sailing  under  our  own  flag. 

"  'It  is  believed  that  the  payment  of  a  moderate  mail  compensation,  in  excess  of 
the  postages  now  allowed  under  the  provision  of  the  general  law,  would  enable  our 
citizens  to  establish  and  maintain  steam-ship  lines  across  the  Atlantic  and  to  South 
American  ports,  which  would  prove  remunerative  to  the  proprietors  and  promote  the 
general  prosperity  of  the  country.  A  reasonable  allowance  for  a  line  to  the  west  coast 
of  South  America  would  assure  regular  mail  communication  by  American  steamers 
with  our  sister  republics  on  that  coast,  and  a  moderate  mail  compensation  for  a  line 
to  Japan  and  China  will  doubtless,  continue  the  mail  service  to  those  countries  in 
American  ships  after  the  termination  of  the  existing  subsidy  contract,  which  will 
expire  on  the  31st  of  December,  1876.  I  think  it  safe  to  say  that  the  sum  of  $500,000 
per  annum,  now  granted  as  a  subsidy  to  the  Japan  and  China  line  for  a  single  monthly 
service  on  that  route,  would,  in  addition  to  the  postages  on  the  mails  convoyed,  be 
quite  sufficient,  judiciously  apportioued  between  the  respective  routes,  to  maintain 
an  efficient  mail  service,  by  steamers  sailing  under  our  flag,  on  all  the  important  ocean 
routes  which  should  be  occupied  by  linos  of  American  steamers.'  (Marshal  Jewell, 
Postmaster-General,  November  15,  1875.) 

"  Senator  Bayard,  debating  the  subsidy  to  the  Collins  line  in  185'2,  said  : 

"  '  I  am  willing  to  trust  American  skill  and  industry  in  competition  with  any  people 
on  the  globe,  when  they  stand  nation  to  nation,  without  Govornnieut  interference. 
But  if  the  treasury  of  a  foreign  nation  is  poured  into  the  lap  of  individuals  for  the 
purpose  of  destroying  the  interests  of  my  country,  or  for  building  up  a  commercial 


260  TRADE    AND    TRANSPORTATION    BETWEEN 

marine  at  the  expense  of  the  commerce  and  prosperity  of  the  United  States,  I,  for 
ono,  will  count  no  cost  in  countervailing  such  governmental  action  on  the  part  of 
Great  Britain  or  any  foreign  power, 

"  '  It  has  been  ol)jected  that  these  grants  create  a  monopoly.  ♦"  *  *  If  the  argu- 
ment be  true,  I  ask  you  if  it  does  not  apply  to  the  transportation  of  your  mails  by 
l.ind.  •  »  •  Then  the  whole  Government  action  is  a  series  of  monopolies  as  re- 
gards the  '  Post-Ofhce  service.' 

"  He  then  argued  that  it  was  not  monopolj',  but  American  competition  against 
British  monopoly. 

"  '  Will  you  adopt  a  policy  which  will  place  the  entire  transportation  of  your 
jnails  under  their  (Brili.sh)  control  ;  which  will  put  into  their  hands  the  transporta- 
tion of  passengers:  which  will  lay  a  tax  on  American  citizens  for  the  advancement  of 
British  commerce,  their  freights,  etc.  f  Such  may  be  the  jiulgment  of  the  honorable 
Senator,  but  it  is  not  mine,  and  I  trust  it  will  not  be  that  of  the  American  Senate. 

"  '  The  luail-strvice  in  this  and  in  all  countries  on  land  is  a  Government  duty,  and 
with  all  great  maritime  nations  which  have  the  power  to  control  that  service  on  the 
of^ean,  it  is  as  much  a  Government  duty,  where  their  maritime  interests  are  concerned, 
where  their  extensive  commerce  is  concerned,  as  is  on  land  the  proper  transportation 
of  correspondence.  The  mail-service  with  foreign  couutries,  on  any  principle  that  I 
can  appreciate,  is  as  much  a  governmental  duty,  and  demands  as  much  the  expendi- 
ture and  the  attention  of  the  Government  as  transportation  of  correspondence  in  the 
interior  of  the  country.' 

"Mr.  Badger,  of  North  Carolina,  on  Collins  subsidy,  said  the  question  was  one  of 
'  controlling  importance  ; '  it  is  a  '  mighty,  peaceful,  and  important  contest  between 
the  United  States  and  Great  Britain  for  supremacy  ; '  and  that  '  the  question  whether 
we  would  voluntarily  surrender  that  which,  to  obtain  and  perpetuate.  Great  Britain 
would,  without  hesitation,  sacrifice  one  hundred  times  the  amount  of  money  in- 
volved.'   •    •     » 

"  '  I  do  not  believe  that  money  is  devoted  to  its  proper  purpose  by  being  hoarded. 
I  do  not  believe  that  money  exjiended  to  advance  the  honor,  promote  the  interests, 
to  maintain  the  supremacy,  of  my  own  country,  is  ever  otherwise  than  well  and  eflfect- 
ually  bestowed,  bringing  that  return  which  nations  should  consider  as  the  highest 
and  best — the  improvement  of  the  condition  of  their  people,  the  elevation  of  the 
character  of  the  whole;  for  with  regard  to  nations  the  reputation  of  strength  is 
strength.' 

"  Lewis  Case,  in  1852,  on  the  Collins  subsidy,  said,  in  the  United  States  Senate: 
"  '  Well,  sir,  it  is  a  question  of  protection — of  high  and  important  and  holy  protec- 
tion—in the  best  sense  of  the  term  ;  the  protection  of  our  country,  of  our  expatriated 
seamen,  of  our  commerce,  of  our  interests,  of  our  honor,  of  our  soil,  of  all  that  gives 
dignity  and  character  to  nations;  protection  against  defeat,  disgrace,  and  dishonor. 
"  '  This  kind  of  protection  to  our  commerce  is  as  effectual  as  the  protection  afforded 
by  expensive  naval  armaments.' 

"  Humphrey  Marshall,  of  Kentucky,  in  1852,  said  he  would  vote  for  a  subsidy  to  a 
line  of  mail  steamers  to  '  maintain  a  nursery  for  our  Navy,'  and  '  to  maintain  a  com- 
petition with  the  British  lines.' 

"  Senator  Jones,  of  Tennessee  (Collins  subsidy) : 

"•  Ishouldrcgardit  asanationalmisfortune  if  theenterpriseehouldfail.  •  »  •  j 
am  willing  to  vote  large  and  liberal  allowance.' 

"  Senator  Shields  spoke  strongly  in  favor  of  the  subsidy  and  said  it  was  '  impo8,siblo 
for  American  private  enterprise  to  succeed  against  private  Britisli  enterprise,  backed 
by  the  money  and  energy  of  the  British  Government.' 

"Senator  Bell,  of  Tennessee,  spoke  in  favor  of  the  subsidy,  and  said,  'I  feel  that 
the  honor  of  the  country  is  concerned  in  it  and  »  *  *  that  the  national  spirit  ia 
kept  alive  by  it.' 

"Mr.  Hale,  of  New  Hampshire,  spoke  and  voted  in  favor  of  it. 


THE   UNITED    STATES   AND   LATIN    AMERICA.  261 

THOMAS  BUTLER   KING'S  REPORT,  HOUSK   OF   REPRESENTATIVES,  TWKNTY-NINTII  CON- 
GIUCSS,    FIRST  SESSION,    1846. 

"  '  Within  scveu  years  after  the  firststeamer  crossed  the  Atlantic  Great  Britain  bad 
more  than  two  hundred  war  steamers. 

"  '  If  not  compatildo  with  our  institutions  or  interests  to  keep  a  largo  Navy  it  is 
inii)nrtant  to  devise  some  way,  by  small  outlay,  to  prepare  ourselves  for  the  contin- 
gency of  war. 

"  *  If  asked  why  Great  Britain  has  thus  taken  the  lead  of  us  in  ocean  steam  naviga- 
tion, while  we  are  so  greatly  superior  in  domestic  steamers  and  sailing  ships,  the 
answer  is  that  she  has  anticipated  us  through  the  extension  of  her  mail  system  to  foreign 
cou7itries,  in  combination  with  her  naval  arrangements,  thus  rendering  it  almost  im- 
possible for  private  enterprise  to  enter  into  competition  with  her.' 

"  The  House  had  already  passed  a  bill  to  establish  a  line  of  four  steamers  from  New 
York  to  Bremen. 

MR.     SOUL^'S    REPORT    TO    SENATE,   FIRST    SESSION    THIRTY-FIRST    CONGRESS,    1850, 
FROM   COMMITTEE   ON   POST-OFFICEd  AND  POST-ROADS. 

"  'The  committee  believe  that  the  fostering  care  of  the  Government  may  be  ex- 
tended to  these  great  interests  (agriculture  and  manufactures)  by  judicious  and  well- 
regulated  arrangements  through  the  Post-OfHce  Department  *  *  *  by  which 
present  and  future  means  of  maritime  defense  are  increased  and  encouraged.' 

rusk's  report  to   the   senate   from  the   committee  ON  POST  OFFICES  AND   POST- 
ROADS,   THIRTY-FIRST  CONGRESS,   FIRST  SESSION,    1850. 

"  'The  importance  of  steam  mail  service  when  considered  with  reference  to  the 
convenience  which  it  affords  to  the  social  intercourse  of  the  country  is  as  nothing 
when  compared  with  its  vast  bearing  upon  the  commerce  of  the  world.  Wherever 
facilities  of  rapid  travel  exist  trade  will  be  found  with  its  attendant  wealth.  •  •  * 
The  commercial  history  of  Great  Britain  has  shown  that  mail  facilities  have  uniformly 
gone  hand  in  hand  with  the  exteusiou  of  trade.  »  »  »  With  a  view  to  this  we 
have  seen  England  increasing  her  steam  marine  at  enormous  expense  and  sustaining 
packet  lines  connecting  with  every  quarter  of  the  globe,  even  in  cases  where  any 
imviediate  and  direct  remuneration  was  out  of  the  question. 

"  'To  construct  ships  and  keep  them  in  our  navy-yards,  subject  to  the  injuries  of 
time  and  casualties,  does  not  consist  with  the  notions  of  the  American  people  on  the 
score  of  economy.  Nor  is  it  in  accordance  with  the  received  opinions  in  regard  to 
the  propriety  of  placing  excessive  patronage  in  thehands  of  the  Federal  Government. 

"  'At  the  same  time  it  is  in  perfect  unison  with  the  spirit  of  our  free  institutions 
that  the  arts  of  peace  shall  bo  made  tributary  to  the  purposes  of  defense,  and  that 
the  same  energies  which  extend  the  commerce  aud  manufactures  of  our  country  shall, 
in  the  event  of  necessity,  be  capable  of  being  made  use  of  for  our  protection. 

"'We  have  the  example  of  the  most  powerful  maritime  nation  in  the  world  to 
guide  us  in  the  matter.' 

REPORT  OF  MR.   RUSK,   FROM    THE    COMMITTEE    ON    POST-OFFICES    AND  POST-ROADS, 
THIRTY-SECOND  CONGRESS,   FIRST  SESSION,    1852. 

"  '  Your  committee  seems  to  have  understood  at  the  outset  that,  regarding  the  ocean 
mail-service  as  the  offspring  of  the  wants  of  all  the  producing  classes  of  the  country 
they  have  not  felt  at  liberty  to  consider  the  propositions  which  have  been  presented 
to  them  in  any  other  point  of  view  than  as  connected  with  and  subservient  to  the 
general  policy  of  the  Government,  which  embraces  alike  every  section  of  the  country. 

"'The  commercial  interests  of  the  country  were  entirely  at  the  mercy  of  British 
steamers.       *      *      •      It  became  necessary  to  choose  whether  American  commerce 


262  TRADE    AND    TRANSPORTATION    BETWEEN 

should  be  tributary  to  British  marilimo  snprotnacy  or  an  American  medium  of  com- 
munication sbonkl  be  established  by  the  intervention  of  the  Federal  Government. 

"  'It  had  been  found  impossible  for  our  merchants  to  continue  successfully,  single- 
handed,  against  the  joint  eflbrts  of  the  British  Government  and  British  commercial 
influence. 

"  '  Under  the  circumstances  above  stated  it  was  impossible  for  Congress  to  hesitate 
for  a  moment  which  course  to  pursue,  and  it  was  determined  to  adopt  a  policy  which, 
while  it  would  be  in  strictaccord  with  the  spirit  of  our  free  institutions,  shoulil  place 
the  country  in  its  proper  attitude  and  render  its  commerce  and  postal  arrangements 
independent  of  all  foreign  or  rival  agencies. 

"  'The  American  line  from  New  York  via  New  Orleans  toChagres,  under  subsidy, 
drove  out  the  British  lino  which  had  previously  plied  our  southern  coast. 

"  '  This  important  subject  is  a  matter  of  great  national  concern,  independent  of  the 
very  secoudary  motive  of  individual  interest. 

'"These  ocean  mail  facilities  should  exist  through  the  intervention  of  the  Govern- 
ment, more  especially  as  they  were,  in  all  probability,  beyond  the  reach  of  private 
means. 

'"The  transportation  of  ocean  mails  with  the  greatest  possible  advantage  to  the 
important  interests  of  the  country  at  large  is  an  object  of  paramount  importance. 

"'  Merely  as  a  matter  of  dollars  and  cents  the  service  in  question  should  be  liberally 
sustained  by  Congress  and  will  in  the  end  make  ample  returns. 

'"  But  your  committee  regard  this  proposition  as  one  the  mere  money  features  of 
which  are  of  minor  consequence  when  brought  into  comparison  with  other  more  im- 
portant considerations. 

•' '  The  question  is  no  longer  whether  certain  individuals  should  be  saved  from  loss 
or  enabled  to  make  fortunes,  but  whether  the  American  shall  succumb  to  the  British 
lines  and  Great  Britain  be  permitted  to  monopolize  ocean  steam-navigation  not  only 
betweeu  Europe  and  America  but  throughout  the  world.' 

"The  committee  regard  '  the  existence  and  rapid  extension  of  the  system  of  ocean 
mail  steam  navigation  as  absolutely  essential  to  the  dignity  and  prosperity  of  the 
country.' 

"  '  In  any  future  struggle  for  superiority  on  the  ocean  the  contest  will  be  decided  by 
steam.  England  realizes  this  aud  acts  accordingly  ;  to  rival  her  power  and  prosperity 
we  must  rival  her  energy  and  her  activity.' 

"MR.  ward's  RKPORT— SKNATE,  1859,  THIRTY-FIFTH  CONGRESS,  SECOND  SESSION. 

"The  Government  of  Mexico  had  contracted  with  Carlos  Butterfield  for  a  line  of 
steamers  from  New  Orleans  to  Mexican  ports  at  $1'20,0U0  per  annum  for  ten  years. 
The  committee  thought  the  increase  of  duties  on  increase  of  commerce  would  pay  the 
subsidy. 

"  A  letter  from  the  Postmaster-General,  Aaron  V.  Brown,  to  the  committee  says: 
•Frequency,  certainty,  and  regularity  of  intercourse  betweeu  countries  are  the  great 
life-springs  of  commerce.'  The  trade  can  be  secured  in  '  no  other  way  so  well  as  by 
the  increase  of  commercial  aud  postal  facilities.' 

"MR.  wood's  report,  1859. 

"  In  the  second  session  of  the  Thirty-fifth  Congress,  1859,  Mr.  Wood,  from  the  Com- 
mittee on  the  Post-Oflice  and  Post-Roads,  reported  a  bill  to  advance  bonds  for  two- 
thirds  of  the  value  of  ocean  steamers  to  carry  the  mail,  and  gave  besides  $'2  per  mile 
traveled — aid  having  been  given  to  the  Howard  and  Aspiuwall  steamers  to  San 
Francisco,  the  Law  steamers  to  Chagres,  the  C<dlius  steamers  to  Liverpool,  and  the 
Bremen  and  Havre  lines,  the  Government  having  advanced  $25,000  per  month  on 
each  steamer  until  they  were  fiuished,  deducting  the  advance  annually  from  the  whole 
term  of  the  contract. 

"  He  declared  these  steamers  but  the  continuation  of  the  railroads,  the  great  arteries 


THE    UNITED    STATES    AND    LATIN    AMERICA.  263 

of  trade  to  the  shores  of  Europe.     Tbe  whole  country  was  iuterested,  he  said,  in  this 
truly  national  line  of  steamers. 

"  MR,  WELLS'S  REPORT,  1871,  FORTY-FIRST  CONGRESS,  THIIH)  SESSION. 

"  Mr.  Wells,  from  the  Select  Conunittee  on  the  Cause  of  the  Reduction  of  American 
Touiiago,  made  a  report,  and,  as  a  remedy,  rccouimended  the  'granting  of  Govern- 
ment aid  by  way  of  postages  on  mails  and  by  subsidies,  so  as  to  insure  tbe  establish- 
ment of  American  ocean  liucsof  steamers  to  foreign  ports,  thus  securing  to  our  people 
the  profits  of  the  trade  so  created.' 

"  He  said  '  the  establishment  of  a  line  of  steamers  from  New  Orleans  to  Mexican  ports 
would  vastly  increase  our  commerce  and  cultivate  friendly  political  relations.'  The 
British  policy  of  mail  subsidies  he  calls  a  'judicious  system.'  'So  long  as  the  policy 
of  government  aid  is  pursued  by  Great  Britain  and  France  no  successful  competition 
can  be  maintained  here  unless  our  Government,  equally  generous,  will  place  our 
business  interest  on  such  a  footing  that  we  can  combat  for  the  supremacy,  or  at  least 
for  a  fair  division.' 

"  Mexico,  in  1859,  gave  $120,000  per  annum  subsidy  for  ten  years,  but  we  did  not  re- 
spond. In  1870  she  gave  a  New  Orleans  line  $750  per  trip,  and  we  did  not  second 
that. 

" '  No  people  on  earth,  as  well  as  those  of  the  United  States,  understand  so  fully  the 
vast  wealth  developed  and  created  by  railroad  lines.  The  analogy  is  pei  feet  as  to 
ocean  routes.  They  are  the  railroads  of  the  ocean,  making  the  world  pay  tribute  to 
us,  and  creating  vast  markets  for  our  products  and  manufactures.  We  give  millions 
to  the  one ;  shall  we  hesitate  at  a  few  thousands  for  the  other  T' 

"The  way  to  avail  ourselves  of  our  proximity  to  Central  and  South  America  is  to 
substitute  our  own  steamers  for  the  wealthy  lines  of  European  countries. 

"  The  transfer  of  our  carrying  trade  to  foreign  bottoms  is,  in  the  opinion  of  the  com- 
mittee, to  be  attributed  mainly  '  in  the  great  development  of  the  English  and  French 
steam  connnercial  marine,  more  especially  in  American  waters,  a  development  which 
has  been  stimulated  and  is  sustained  by  a  liberal  system  of  subsidy.' 

"  The  aggregate  subsidy  paid  by  European  governments  to  steam'mail  lines  to  Amer- 
ica was  then  (1871)  $4,500,000  per  annum. 

"  MR.  cole's  REPORT  TO  SENATE  FROM  COMMITTEE  ON  POST-OFFICES  AND  POST- ROADS, 
FORTY-SECOND  CONGRESS,  SECOND  SESSION,  1872,  ON  BILL  AUTHORIZING  AN  IN- 
CREASE OF  OCEAN  UNITED  STATES  MAIL  STEAM-SHIP  SERVICE  BETWEEN  SAN  FRAN- 
CISCO AND  CHINA. 

"  *  By  refusing  to  help  our  own  lines  of  steam-ships  we  are  helping  to  maintain  those 
which  will  drive  our  few  remaining  lines  from  the  ocean  by  the  payment  of  postages 
amounting  to  hundreds  of  thousands  of  dollars  annually,  and  by  the  payment  of  still 
larger  sums  of  freight  and  passage  money,  which  would  come  back  to  us  in  the  hands 
of  our  citizens,  if  proper  governmental  aid  should  be  judiciously  granted  to  our  home 
companies. 

*♦  *  It  is  no  local  question.  The  whole  country  is  interested  in  the  Buccess  of  the  enter- 
prise. 

"  *  While  taxing  our  citizens  to  foster  the  manufactures,  is  it  wise  to  refuse  the  aid 
necessary  to  keep  our  steamers  from  being  driven  from  the  ocean  T' 

•'  MR.  cole's  REPORT  TO  SENATE,  FORTY-SECOND  CONGRESS,  SECOND  SESSION,  JANU- 
ARY, 1872,  ON  A  BILL  TO  ESTABLISH  OCEAN  MAIL  SERVICE  TO  AUSTRALIA  AND  NEW 
ZEALAND. 

"  The  committee  recommends  the  bill  to  'open  up  the  vast  commerce  which  rightly 
belongs  to  and  should  be  secured  by  American  enterprise.' 

"  'Your  committee  are  of  the  opinion  that  it  is  tbe  plain  duty  of  this  Government  to 
at  once  secure  to  American  ships  and  American  enterprise  their  due  proportion  of  this 
great  and  growing  commerce  of  the  Pacific' 


264  TKADK    AND    TRANSPORTATION    BETWEEN 

"The  Secretary  of  tlio Treasury,  in Lia  report,  November,  1871,  advocates  the  meas- 
ure, and  says  '  otherwise  it  is  impossible  for  our  merchants  to  compete  with  subsi- 
dized English  lines.' 

"MR.    HAMLIN'S    REPORT  TO  SENATE  COMMITTEE  ON  POST-OFFICES   AND   POST-ROADS, 
SECOND  SESSION,  FORTY-SECOND  CONGRESS,  FEBRUARY,  1872. 

"  '  The  propriety  and  expediency  of  giving  aid  to  American  steam-ships  to  carry 
ocean  mails  and  to  promote  American  commerce  has  often  been  considered  by  your 
committee. 

"  *  When  it  is  considered  that  England,  in  facilities  and  in  cost  of  labor  or  material 
and  interest  on  required  capital,  possesses  advantages  in  the  cost  of  constructing 
ships,  &c.,  and  when  it  is  also  considered  that  England  gives  large  subsidies  to  es- 
tablish and  continue  lines  of  steam-eliips,  it  becomes  apparent  that  she  is  rapidly  mo- 
nopolizing ship-building  and  the  commerce  of  the  seas.  It  is  also  apparent  that  unless 
immediate  and  efficient  aid  i.s  speedily  given  by  the  Government  our  entire  foreign 
trade  and  commerce  will  in  a  short  time  pass  into  the  control  of  British  ship-owners, 
or  into  the  hands  of  other  foreign  nations  who  have  subsidized  lines  of  steam-ships.' 

"  The  report  sofour  consuls  tell  the  saniouuiforiu  and  doleful  story  of  our  commercial 
decadence;  how  the  sailing  ships  of  the  United  States  disappear  from  foreign  porta 
and  vanish  from  the  seas  before  the  fast  steamers  of  Great  Britain,  and  even  other  in- 
ferior powers,  like  smoke  before  a  gale.  With  15,000  miles  of  coasts,  studded  with 
the  richest  cities  in  the  world,  we  have  neither  the  merchants'  ships  to  supply  their 
wants  nor  the  navy  to  defend  them.  Two  ships  of  one  of  several  European  powers 
could  ravage  our  coast,  levj'  contribution  upon  our  cities  or  destroy  them,  from  Port- 
land to  Corpus  Christi.  If  we  can  not  support  a  costly  navy,  let  us  at  least  encourage 
the  plant  in  material  and  men  to  improvise  a  navy  if  war  should  demand  on©. 

"  As  your  committee  stated  in  the  outset,  the  consideration  of  this  measure  leads  us 
to  others  cognate  to  it  and  momentous  in  importance  to  our  commercial  and  political 
future.  Treating  this  as  a  postal  question,  we  can  see  no  reason  why  a  fair  compen- 
sation by  contract  should  not  be  paid  as  well  for  ocean  as  for  land  transportation  of 
our  mails.  We  believe  that  the  national  prosi)erity,  the  national  safety,  and  the 
national  honor  are  all  concerned  ;  and  while  gentlemen  are  taxing  their  ingenuity  to 
reduce  our  plethoric  income,  we  can  not  see  what  better  use  can  be  made  of  a  part  of 
it  than  carrying  our  mails  to  foreign  ports  for  the  upbuilding  of  our  commerce.  We 
believe  the  passage  of  this  bill  will  meet  the  approval  of  the  people  of  our  Republic, 
and  that  its  defeat  will  create  tlie  profoundest  satisfaction  in  Great  Britain,  who,  safe 
in  the  feeble  supineness  of  her  former  rival,  has  annually,  by  carrying  our  commerce, 
taken  millions  of  dollars  from  our  shores." 

In  conclusion,  the  committee  ask  attention  to  the  following  remarks  by  the  Admiral 
of  the  Navy  of  the  United  States,  taken  from  the  report  of  the  Secretary  of  the  Navy, 
at  the  opening  of  the  present  Congress: 

THE   MERCANTILE   MARINE— ITS  NECESSITY  TO   THE   NAVY. 

"  I  have  long  looked  forward  to  the  time  when  Congress  would  take  some  steps 
towards  resuscitating  our  mercantile  marine,  which  has  long  been  languishing  for  the 
want  of  Government  aciion  in  its  behalf.  A  largo  number  of  merchant  steam-ahips 
would  in  time  of  war  be  an  important  adjunct  to  our  regular  naval  force,  for  many  of 
them  would,  with  comparatively  little  alteration,  make  the  best  commerce-destroyers 
in  the  world,  and  also  the  best  destroyers  of  commerce  destroyers. 

"  Two  of  the  most  formidable  vessels  of  this  kind  in  the  Russian  navy  were  built 
by  Cramp  &  Sons,  of  Philadelphia,  for  the  merchant  service.  They  carry  a  large 
amount  of  coal  and  provisions,  and,  in  case  of  necessity,  conld  run  away  from  the 
fastest  cruisers. 

"  If  we  ever  succeeded  in  building  up  a  mercantile  marine  the  Navy  would  feel  as- 
sured that  the  vessels  would  obtain  the  best  speed.     We  were  the  firat  nation  to  build 


THE    UNITED    STATES    AND    LATIN    AMERICA.  265 

large  and  fast  steamers,  and  would  not  feel  satisfied  until  wo  bad  outstripped  tbobest 
vessels  now  alloat. 

•'  It  is  only  necessary  to  glance  at  tbc  list  of  fast  mercbant  steamers  belonging  to 
Enubmd,  France,  and  Germany  to  see  wbat  an  influence  they  must  exert  in  a  war 
with  a  commercial  nation.  England  alone  would  cover  tbe  ocean,  witb  tbc  aid  other 
coal  mines,  as  she  did  formerly  witb  her  canvas,  and  commerce-destroyers  of  other 
nations,  unless  they  bad  great  speed,  would  bo  gathered  in  with  perplexing  rapidity. 
Th.-re  is  no  part  of  tbe  world  where  the  British  flag  does  not  float  over  some  fast  and 
powerful  steamer,  all  ready  in  case  of  necessity  to  be  converted  into  a  ship  of  war, 
and  after  receiving  her  commission  and  guns,  witb  a  trained  crew,  she  would  be  ready 
in  a  few  weeks  to  go  forth  on  her  mission  of  destruction.  Many  of  these  British 
steamers  are  running  to  our  shores,  and  we  pay  them  a  yearly  tribute  of  $130,000,000 
for  carrying  our  produce  and  passengers  to  Europe.  Great  Britain,  by  giving  every- 
possible  encouragement  to  her  commercial  marine,  adds  enormously  to  tbestr«ngth  of 
her  navy  in  time  of  war,  and  makes  her  ocean  steamers  not  only  their  own  protectors, 
but  tbe  destroyers  of  her  enemies.  This  great  fleet  of  steamers  has  been  built  up  by 
subsidizing  the  lines  until  they  are  able  to  do-without  such  assistance. 

"  No  wonder  Great  Britain  has  become  the  great  commercial  nation  of  the  world,  and 
made  all  other  nations  pay  tribute  to  her  for  carrying  their  products.  Her  statesmen 
do  not  raise  tbe  cry  of  '  taxing  the  people'  when  asked  to  assist  some  proposed  steam 
line  to  enter  upon  its  career.  They  do  not  waste  precious  time  in  investigating  mat- 
ters which  should  be  plain  to  tbe  commonest  understanding,  but  are  ready  to  spend  a 
million  of  dollars  so  that  twenty  millions  will  flow  into  British  coffers.  Instead  of 
taxing  our  people  by  subsidies,  '  we  are  making  them  lose  over  three  hundred  mil- 
lions a  year  in  the  last  ten  years.'  (See  Secretary  Frelinghuysen's  letter  on  the  com- 
merce of  the  world.)     , 

"From  1872  to  1882  British  imports  were  $18,363,340,000;  exports  $13,.566,6(;i,000 ; 
showing  a  balance  of  trade  against  her  of  $4,79(5,670,000;  three  times  the  amount  of 
our  national  debt.  We  have  paid  a  large  share  of  this  bounty  to  British  mechanics, 
and  not  a  dollar  of  it  has  remained  in  this  country.  The  position  wc  hold  in  the  car- 
rying trade  of  the  world  is  simply  humiliating;  it  is  absolute  dependence  and  sub- 
serviency ;  and  wo  lose  by  it  a  large  fleet  of  fast  steamers  that  would  equal  or  exceed 
for  many  purposes  in  time  of  war  any  that  we  could  build  in  the  Navy.  • 

"  The  first  step  to  be  taken  to  remedy  these  evils  is  to  establish  a  Government  Board 
of  Trade  to  represent  the  wants  of  our  commerce  and  make  such  recommendations 
from  time  to  time  as  would  tend  to  bring  our  commercial  marine  to  its  proper  standard, 
enabling  us  to  carry  a  large  share  of  our  exports  and  imports.  This  Board  of  Trade 
should  be  connected  witb  the  Navy  Department,  and  the  Secretary  of. tbe  Navy 
should  have  supervision  over  all  ocean  steam  lines,  to  see  that  their  vessels  were  con- 
structed with  proper  strength  and  swiftness  to  render  them  capable  of  conversion 
into  ships  of  w  ar. 

"There  would  be  no  necessity  for  subsidizing  our  lines  of  steamers  further  than  by 
paying  them  a  liberal  compensation  for  carrying  all  our  mails ;  so  we  would  hear  no 
more  of  the  cry  of  'taxation'  which  is  raised  by  British  lobyists  every  time  Con- 
gress makes  any  attempt  to  revive  our  commercial  marine.  This  cry  of  'taxation' 
might  be  urged  with  far  more  force  against  our  tarifi",  Avhich  is  imposed  to  protect  our 
home  industries,  and  which  is  ten  times  more  onerous  than  any  subsidy  ever  likely  to 
be  given  to  our  steam  lines. 

"  If  it  was  not  for  her  great  ocean  steam  lines  Great  Britain  would  require  ten  times 
the  number  of  vessels  iu  her  Navy  that  she  has  at  present,  for  her  coast  must  be  de- 
fended against  all  Europe,  aud  her  mercantile  marine  protected,  no  matter  wbat  tbe 
expense.     She  extends  her  arms  over  it  as  a  mother  would  over  her  children. 

"In  1849,  when  the  great  exodus  to  the  California  goldmines  took  place,  Congress, 
seeing  the  great  advantage  of  such  a  course,  established  a  line  of  mail  steamers  from 
New  York  to  the  Isthmus  of  Panama,  and  thence  to  San  Francisco,  stopping  at  in- 
termediate ports.     There  was  no  hesitation  in  ai)piopriating  a  large  amount  of  money 


266         TRADE  AND  TRANSPORTATION  BETWEEN 

for  carryinj;  tho  niJiils.  Congross  did  not  consider  it  a  subsidy,  for  tlie  country  re 
ceived  iu  return  twenty  times  the  value  of  the  amount  expended  on  these  steam  ves- 
sels. I  myself  commanded  one  of  the  mail  steamers,  and  during  three  years  carried 
about  86,000  passengers  and  |82,000,000  in  gold.  But  for  that  action  on  the  part  of 
Congress  no  company  could  have  afforded  to  start  such  expensive  ships.  The  British 
would  have  absorbed  all  that  trade,  and  the  profits  would  have  gone  to  Great  Britain, 
not  to  the  United  States.  The  result  of  that  action  was  we  held  that  line  of  steam- 
era  and  others  until  the  Pacific  Railroad  was  built,  and  for  once  iu  our  lives  we  kept 
a  trade  exclusively  American  in  our  own  hands.  There  were  no  British  ships  in 
competition  at  that  time,  or  we  would  have  heard  the  same  outcry  against  '  subsi- 
dies '  from  American  agents  of  foreign  steam  lines,  who  fear  the  competition  of  our 
countrymen. 

"Who  can  overestimate  tho  importance  of  those  steam  lines  to  California?  We 
gained  actual  possession  of  a  great  country,  with  its  enormous  wealth  in  minerals. 
Within  a  year  a  great  city  sprang  from  the  barren  hills  as  if  raised  by  an  enchanter's 
wand,  and  the  wealth  of  California  has  made  our  Eastern  cities  grow  and  prosper  in 
a  manner  that  the  world  has  seldom  witnessed  before." 


Appendix  A. 

SUBSIDIES   TO   STEAM-SHIPS   IN   EUROPE. 

Jiejiort  by  Consul  Grain,  of  Milan,  on  the  history  and  extent  of  subsidies  granted  to  ocean 
steam-ships  by  France,  Austria- Hungary,  Spain,  England,  Belgium,  Holland,  Sweden, 
Norway,  Italy,  and  Germany. 

The  Government  at  Rome,  for  its  guidance  iu  the  preparation  of  measures  to  aid 
the  Italian  commercial  marine,  has  recently  caused  investigations  touching  past  and 
present  subventions  to  merchant  steamship  lines  by  other  nations.  The  data  furnished 
by  these  researches  embrace  the  history  and  extent  of  subsidies  as  to  most  European 
countries,  and  the  scope  of  the  various  lines. 

FRENCH   SUBSIDIES. 

The  law  of  August  IG,  1879,  authorized  the  minister  of  the  postal  and  telegraphic 
department  to  accord  au  annual  subvention  of  1,200,000  francs  for  a  period  of  fifteen 
years  to  steam-ships  which  should  run  the  following  lines  :  Line  from  Port  Vendres  to 
Algiers;  Algiers  to  Bona;  Marseilles  to  Orau  ;  Port  Vendres  to  Oran  ;  Marseilles  to 
Philippeville  ;  Marscllles-Bona  to  Tunis  ;  Tunis  to  Tripoli. 

The  principal  conditions  were  that  a  now  semi-montlily  lino  should  be  established 
between  Orau  and  Taugiers,  touching  Nemours,  Malaga,  and  Gil)ralta,  and  optionally 
Molilla  ;  that  the  service  of  the  aforesaid  lines  siiould  bo  weekly,  going  and  returning, 
except  for  tho  Marseilles-Algiers  and  Marseillos-Pliilippeville  lines,  which  should  be 
semi-weekly;  the  ships  to  be  new  or  seaworthy,  of  not  less  than  400  tons  register 
for  voyages  between  France  and  Algiers,  and  of  200  for  voyages  along  the  Barbary 
coast ;  to  be  run  according  to  the  line,  12, 10,  or  9  knots  per  hour,  with  a  forfeiture  of 
50  francs  per  hour  for  every  delay  not  justified.  TJio  act  of  concession  also  regulated 
the  mail  service,  treatment  of  passengers,  transport  of  merchandise,  etc.,  and  exacted 
350,000  francs  security;  it  stipulated  that  the  payment  of  subsidy  be  monthly,  but 
forbids  tlie  company  to  cede  any  part  of  the  service  to  another  without  the  express 
consent  of  the  minister.  The  service  was  assumed  by  the  General  Transatlantic 
Company  from  July  1,  1880,  to  June  ;50, 1885,  for  an  annual  subsidy  of  493,500  francs. 

From  February  20, 1858,  Mr.  Marziou,  director  of  the  Union  Maritime  Company, 
was  the  recogni25ed  grantee  of  the  transatlantic  postal  service  between  France,  the 


THE  UNITED  STATES  AND  LATIN  AMERICA.       267 

United  States,  and  tlio  AutilU^H,  operatod  l)y  two  liin^.s,  one  from  Havre  to  New  York, 
the  other  from  St.  Nazairo  to  tlio  Antilles  and  Asplnvvall,  with  subHidiary  lines  to 
Guadeloupo,  to  Mexico,  and  Caen.  Afterwards  Mr.  Eniile  Periere  (Mr.  Marziou  hav- 
in<;  given  np  the  serviie),  under  the  law  of  June  7, 1857,  accepted  in  the  name  of  the 
Transatlantic  Company  a  contract,  of  which  the  following  are  the  principal  clauses  : 
A  concession  of  a  subsidy  of  1),:}00,()UO  francs  per  year,  for  twenty  years,  reduced, 
liowever,  by  600,000  francs  per  year  until  the  actual  running  of  the  Mexican  line, 
and  with  a  clause  that  the  twenty  years  should  begin  only  from  the  date  that  all  the 
lines  were  in  operation,  Mr.  Periere  to  have  the  following  steamers:  Five  of  850 
horse-power;  six  of  600  horse-power;  live  with  a  total  of  875  horse- power ;  three 
each  200  horse-power  ;  one  of  150  horse-power ;  one  of  125  horse-power. 

Mr.  Mallet,  in  behalf  of  the  Credit  Mobilier,  guarantied  the  emission  of  32,000 
bonds  and  32,000  obligations  of  the  said  company. 

The  Government  stipulated  not  to  subsidize  any  lines  between  the  coast  of  New- 
foundland and  the  mouth  of  the  Amazon,  and  that  whenever  a  direct  line  to  New 
Orleans  and  Havana  should  appear  feasible  it  would  first  negotiate  with  the  Trans- 
atlantic Company,  and  in  case  of  non-agreement  would  pay  an  indemnity,  to  be  fixed 
by  a  commission,  for  damages  resulting  from  the  competition.  The  company  bound 
itself  to  make  a  discount  of  30  per  cent,  for  the  transport  of  civil,  military,  and 
ecclesiastical  functionaries,  for  sailors  and  soldiers  of  the  colonies  ;  7  francs  per  day 
was  agreed  upon  for  transport  and  maintenance.  The  annual  distance  to  be  run 
was  fixed  at  157,968  marine  leagues,  divided  thus  :  For  the  semi-monthly  line  from 
Havre  to  New  York,  55,016  leagues;  St.  Nazaire  to  Martinique,  Martinique  to  Santa 
Marta.or  Cartagena,  Santa  Marta  to  Aspinwall,  78,672  leagues.  For  the  monthly 
line  from  Martinique  to  Santiago  de  Cuba,  Santiago  de  Cuba  to  Vera  Cruz,  Vera  Cruz 
to  Tampico,  Martinique  to  Cayenne,  27,080  leagues.  The  average  speed  to  be  11^ 
knots  for  the  New  York  line,  10  for  the  Antilles  and  Aspinwall,  and  8  for  the  others. 

At  the  time  of  the  expedition  to  Mexico  there  was  established  by  couA^ention  of 
February  17, 1862,  a  monthly  voyage  from  St.  Nazaii'e  to  Vera  Cruz,  with  a  subvention 
of  310,000  francs  going  and  returning,  the  company  being  permitted  to  make  only  a 
monthly  voyage  between  Havre  and  Mexico,  the  subsidy  being  reduced,  however,  by 
1,669,220  francs. 

By  convention  of  April  17, 1865,  the  itinerary  of  the  lines  to  the  Antilles  was  modified 
as  follows:  First  line  from  St.  Nazaire  to  Martinique  ;  Martinique  to  Santa  Marta  or 
Cartagena  ;  Santa  Marta  to  Aspinwall.  Second  line  from  St.  Nazaire  to  St.  Thomas  ; 
St.  Thomas  to  Havana ;  Havana  to  Vera  Cruz. 

The  following  five  services  were  established :  The  first  from  Fort  de  Franco  to  Santa 
Lucia  ;  Santa  Lucia  to  St.  Vincent ;  St.  Vincent  to  Granada  ;  Granada  to  Port  of 
Spain;  Port  of  Spain  to  Demerara  ;  Demerara  to  Surinam;  SuriHam  to  Cayenne. 
The  second  from  Fort  de  Franco  to  St.  Pierre  ;  St.  Pierre  to  Point  h  Pitre  ;  Point  k 
Pitre  to  Basseterre  ;  Basseterre  to  St.  Thomas.  The  third  from  Fort  de  France  to  St. 
Pierre ;  St.  Pierre  to  Point  h  Pitre  ;  Point  b,  Pitre  to  Basseterre.  The  fourth  from  St. 
Thomas  to  Porto  Rico  ;  Porto  Rico  to  Hayti ;  Hayti  to  Santiago  de  Cuba ;  Santiago 
de  Cuba  to  Kingston.     The  fifth  from  Vera  Cruz  to  Tampico  ;  Tampico  to  Matamoras. 

On  account  of  these  onerous  modifications  of  lines  the  Government  abandoned  the 
penalty  established  by  article  38  of  the  contract  for  insuflSciency  of  speed  on  the  New 
York  line.  A  convention  of  March  16, 1806,  established  a  monthly  line  for  New  Or- 
leans, in  communication  at  Havana  with  that  from  St.  Nazaire  to  Mexico,  and  one 
between  Fort  de  France  (Martinique)  and  Port  Cabello  (Venezuela),  ^fith  call  at  La 
Guayra.  For  these  two  lines  the  Government  accorded  a  new  subvention  of  131,156 
francs  for  the  first,  and  of  64,017  for  the  second. 

A  convention  of  February  16,  l»l>8,  between  the  French  Government  and  the  Trans- 
atlantic Company  established  two  new  lines,  the  first  monthly  from  Panama  to  Val- 
paraiso, and  vice  versa,  with  the  following  itinerary  :  From  Panama  to  Guayaquil, 
Guayaquil  to  Payta,  Payta  to  Lambayeque,  Lambaye<iue  to  Huaachaco,  Pluauchaco 


268 


TRADE    AXD    TRANSPORTATION    BETWEEN 


to  Callao,  Oallao  to  Chiucbas,  Chiucliiis  to  Islay,  Islay  to  Arica,  Arica  to  Iquique, 
Iquiqne  to  Cobija.  Cobija  to  CaUlera,  Caldcra  to  Huasco,  Uiiasco  to  Coquiuibo,  Co- 
j[uirabo  to  Valparaiso;  the  second  monthly,  from  St.  Thomas  to  Colon,  touching  a* 
Porto  Rico,  Cnba,  and  Jamaica. 

The  subsidy  was  750,000  francs  per  year ;  the  Government  guarantied  5  per  cent, 
interest,  authorized  a  capital  of  60,000,000  francs  and  the  issuing  of  bonds,  stipulat- 
ing, however,  that  the  maximum  of  interest  to  be  paid  by  the  Government  should  not 
exceed  2,000,000  francs,  and  reserving  one-fourth  of  all  profits  realized  by  the  com- 
pany over  and  above  8  per  cent.  The  state  advanced  4,000,000  francs,  reimbursable, 
without  interest,  in  fifteen  yearly  installments.  The  company  bound  themselves  to 
put  on  three  new  steamers,  built  in  France,  of  a  speed  of  l"2  knots  per  hour  and  4.50 
horse-power,  and  to  keep  always  at  Martinique  in  reserve,  for  inter-colonial  service, 
a  steamer  of  at  least  150  horse-power. 

By  convention  of  December  16,  1873,  the  subsidy  was  continued,  the  Pacific  line 
suppressed ;  but  in  exchange  9  steamers  of  a  minimum  force  of  8.50  horse- power  and  a 
speed  of  12^  knots  per  hour  were  required,  and  also  two  additional  monthly  round 
voyages  in  the  six  months  from  April  to  November  between  Havre  and  New  York. 

Mr.  G.  B.  Bcccari,  in  a  pamphlet  published  at  Rome  in  1882,  gives  the  following 
table  of  subventions  accorded  by  the  French  Government  to  the  General  Transatlantic 
Company : 


Point  of  departure  and  arrival. 


Havre 

New  York 

St.  Nazaire ... 

Vera  Crua 

Lines  annexed 
St.  Nazaive  ... 

Aspinwall 

Lines  annexed 


Distance 

in  miles 

going  and 

returning. 


6,348 

11,286 
4,509 

9,834 


Distance 

run 
in  miles. 


165, 048 
189, 540 


162, 288 


516, 876 


Division  of 
subsidies. 


Frane$. 
3, 170, 000 

3, 451, 156 


3, 074, 017 


9, 695, 173 


Number  of 
voyages. 


12 


MESSAGERIE8  MARITIME8 —MEDITERRANEAN   AND   BLACK   SEA   LINES. 

The  convention  stipulated  between  the  Government  and  the  Messageries  Company, 
dated  February  28,  1851,  was  for  a  term  of  twenty  years.  The  annual  subvention 
was  fixed  at  3,000,000  francs,  and  after  ten  years  was  to  bo  diminished  100,000  francs 
per  year.  By  convention  of  January,  1852,  the  subsidy  was  made  3,076,091  francs, 
and  by  a  subsequent  one  of  May  20,  1857,  which  by  ministerial  decree  of  June  2,  1864 
was  extended  to  July  22,  1888,  the  amount  of  the  subsidy  was  raised  to  4,776,118.40 
francs  for  a  yearly  navigation  of  188,300  marine  leagues,  divided  into  nine  difi'erent 
lines.  First  line,  Marseilles  to  Malta,  touching  at  Genoa,  Leghorn,  Civita  Vecchia, 
Naples,  Messina,  and  Pirajus,  with  fifty-two  voyages  per  year,  including  return. 
Second  line,  Marseilles-Alexandria,  touching  Malta,  with  twenty-six  round  voyages. 
Third  line,  Alexandria-Smyrna,  touching  Jatt'a,  Beyrout,  Tripoli,  Latakea,  Alexan- 
dretta,  Messina,  Rhodes,  with  twenty-six  round  voyages  per  year.  Fourth  lino, 
Marseilles-Smyrna,  touching  Malta  and  Syra,  with  twenty-six  round  voyages.  Fifth 
line,  Pirajus-Smyrna,  touching  Syra,  with  twenty-six  round  voyages.  Sixth  line, 
Smyrna-Constantinople,  touching  Mityleno,  Dardanelles,  Gallipoli,  with  fifty-two 
rjund  voyages.  Seventh  line,  Marseillo.s-Constantinople,  touching  Messina  and  Pi- 
rajuH,  with  fifty-two  round  voyages  per  year.  Eighth  lino,  Constantinople-Braila, 
touching  Galatz,  with  thirty-six  vovages  per  annum.  Ninth  line,  CouBtantinople- 
Trebizond,  with  thirty-six  voyages  per  year. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  269 

III  the  confcnict  it  was  stipulated  tli;it  tho  comi)aiiy  have  at  least  fifteen  steamers, 
six  of  220  liorse-power  or  over,  and  nine  of  160.  The  rules  for  the  postal  service  and 
sustenance  of  passengers  are  nearly  identical  with  those  above  mentioned  for  the 
Transatlantic  Company. 

There  is,  however,  a  clause  that  in  case  of  war  the  Government  reserves  the  right 
to  take  possession  of  the  company's  material,  paying  5  per  cent,  interest  upon  the  ap- 
proximate capital,  and  re-iinbursing  tho  appraised  losses  and  damages.  Also,  in  case 
of  suspension  of  a  weekly  voyage  between  Marseilles  and  Constantinople  the  company 
will  be  bound  to  inaugurate  a  military  and  postal  service  between  Algiers,  Bona, 
and  Oran,  transporting  gratuitously,  besides  hitters  and  funds,  every  year  20,000  tons 
of  material  and  30,000  passengers  of  the  fourth  class,  including  maintenance. 

MESSAGERIES  MAKITIMES   LINE   Ol*"   BRAZIL-RIO   DEL   PLATA. 

The  convention  of  September  16,  1857,  for  tho  postal  service  for  Brazil  for  a  term  of 
twenty  years,  went  into  force  in  1860,  was  extended  to  1884,  and  accorded  a  yearly 
subsidy  of  4,700,000  francs  to  the  luessageries,  with  the  obligation  to  make  twice  a 
month  alternately  from  Bordeaux  and  from  Marseilles  the  following  voyages:  First, 
from  Bordeaux  to  Rio  Janeiro,  touching  Gorea,  Pemambuco,  and  Bahia.  Second, 
from  Marseilles  to  Rio  Janeiro,  touching  Gorea,  Pernambuco,  and  Bahia.  Third, 
from  Rio  Janeiro  to  Buenos  Ayres,  touching  Montevideo — that  is,  a  total  distance  of 
101,232  marine  leagues.  However,  the  line  from  Marseilles  was  suppressed  by  a  suc- 
ceeding convention  of  April  22,  1861,  and  the  subsidy  reduced  to  2,306,172  francs,  the 
company  to  have  ten  steamers,  seven  thereof  to  be  at  least  of  450  horse-power,  and 
three  of  200,  with  an  average  speed  of  9  knots  per  hour  for  the  line  to  Brazil,  and  of  8 
for  the  subsidiary  from  Brazil  to  La  Plata.  For  passengers  for  the  service,  and  for 
transports,  &c.,  are  adopted  the  same  rules  as  for  the  other  lines,  with  express  stipu- 
lation that  the  contract  is  not  to  be  assigned  to  others  without  the  written  consent  of 
the  minister  of  finance. 

MESSAGERIES   MARITIMES — INDO-CHINA   LINE. 

April  22j  1861,  there  was  stipulated  an  agreement  between  the  French  Government 
and  the  messageries,  granting  to  the  company  for  twenty-one  years  a  subvention  of 
7,.500,000  francs  for  the  first  three  years;  7,000,000  for  the  second  three;  6,000,000  for 
other  three ;  6,500,000  for  other  three ;  5,000,000  for  other  six,  and  5,000,000  for  the 
last  six  years.  The  service  embraces  one  principal  monthly  line,  in  communication 
with  lines  of  the  Mediterranean,  and  five  subsidiary  lines.  The  principal  leaves  Suez 
for  Saigon,  touching  Aden,  Point  de  Galles,  Penang,  and  Singapore.  Of  tho  sub- 
sidiaries, all  monthly,  tho  first  goes  from  Aden  to  the  island  of  Reunion  and  Mauritius; 
the  second  from  Point  de  Galles  and  Chandernagore,  touching  Pondichery,  Madras, 
and  Calcutta;  the  third  from  Singapore  to  Batavia ;  the  fourth  from  Saigon  to  Ma- 
nila; the  fifth  from  Saigon  to  Shanghai,  touching  Hong-Kong. 

By  convention  of  June  2,  1864,  the  line  from  Saigon  to  Manila  was  suppressed,  and 
in  its  place  was  substituted  another,  monthly,  from  Shanghai  to  Yokohama,  and  the 
line  from  Mauritius  to  Aden  was  extended  to  Suez,  with  an  increase  of  subsidy  to  the 
first  of  341,301  francs  yearly,  and  to  the  second  of  256,631  francs  yearly.  The  total 
yearly  distance  to  be  run  was  fixed  at  112,194  marine  leagues. 

By  a  convention  of  April  6,  1868,  the  company  engaged  to  prolong  the  Suez  line  to 
IIoug-Kong  ;  to  take  Hong-Kong  instead  of  Saigon  as  the  point  of  departure  for  the 
subsidiary  line  to  Shanghai ;  to  establish  a  direct  line  from  Kong-Kong  to  Yokohama, 
suppressing  that  from  Shanghai  to  Yokohonia ;  to  make  twenty-six  voyages  instead 
of  twelve  on  the  principal  line  between  Suez,  IIt)ug-Kong,  Yokohama,  and  that  of 
Hong-Kong,  Shanghai;  to  increase  by  one  voyage  per  year  on  tlie  subsidiary  lines. 
For  this  increase  of  about  90,812  marine  leagues  in  distance  there  was  conceded  an 


270 


TRADE    AND    TRANSPORTATION    BETWEEN 


average  Bubventiou  of  37.50  francs  for  every  league,  aud  jier  year  3,405,450  fraucs, 
payable  monthly. 

MESSAGERIES  MAJRITIMES— AUSTRALIAN  LINE, 

A  convention  made  June  25,  1881,  which  went  into  effect  in  October,  1H82,  stipu- 
lated for  a  subvention  of  3,297,216  francs  per  year  for  fifteen  years,  for  a  yearly  dis- 
tance to  be  run  of  103,('38,  or  32  francs  per  league.  The  conditions  imposed  on  the 
company  are  not  yet  made  public,  except  that  a  speed  of  over  11  knots  per  hour  is 
established.  The  account  current  of  the  Messageries  Maritimes  Comjiany  for  the 
years  1879  and  1880  presents  the  following  results: 


Description. 


Income  received  for  passengers,  freight,  etc , 

By  Government  subvention 

Total 

Expenses  of  every  kind,  including  interest  on  bonds 

Profits 


1879. 


Francs. 
31,  C03,  ,'J66.  00 
14,  C57,  392. 00 


45,  660,  9n8.  00 
41,144,353.83 

5,  516,  004. 17 


Francs. 

32,951,719.00 
14, 097,  390.  00 

47,  049, 115.  00 
42,  522,  048  i-3 

4, 527, 066. 17 


The  company  had  in  1880  fifty-six  steamers,  with  a  total  of  24,270  horse-power,  and 
for  the  greater  part  of  great  capacity.  The  distances  run  in  that  year  make  a  total 
of  1,781,0.58  miles,  of  which  the  obligatory  postal  service  was  1,401,549^  miles  ;  optional 
service,  not  periodical,  325,149f  miles;  for  service  of  particular  urgency,  54,3.59  miles. 

It  should  be  observed  that  under  the  law  of  January  30,  1881,  granting  premiums 
for  construction  aud  navigation,  all  the  steam-ship  companies  having  postal  subven- 
tions are  excluded  from  benefits. 

In  the  budget  of  the  minister  of  finance  at  this  moment  under  discussion  in  the 
French  Chambers  the  subventions  figure  as  follows  : 

Francg. 

Line  between  the  Continent  and  Corsica 375,000 

Lines  of  the  Mediterranean,  Brazil,  and  La  Plata 4,382,263 

Lines  of  New  York  and  Antilles 9,958,606 

Indo-China  line 8,573,024 

Algiers  line 880,000 

Calais  and  Dover  line 100,0t)0 

Total 24,268,892 

AUSTRO-HUNGARIAN   SUBSIDIES. 

The  postal  and  navigation  convention  which  regulates  the  service  of  the  Austro- 
Hungarian  Lloyd,  and  tho  Government  subsidy  accorded  to  that  steam  navigation 
company,  bears  date  June  26,  1878,  and  is  for  a  term  of  ten  years,  commeuciuii  July 
1,  1878. 


«'t 


THE    ITNITEl)    STAIES    AND    LATIN    AMERICA. 
The  lines  and  sptod  are  iutlicated  in  the  auuexed  table 


271 


Courses. 


No.  of 
voyages 
yoaiTy. 


No.  of 
mariiiiue 

leatiins 
for  each 

round 

course. 


A. — Course  with  speed  of  10  knots  per  hour. 
Constantinople,  Varna,  and  return ." 

B. — Course  with  speed  of  9  knots, 

Trieste  (Fiume),  Corfu,  Alixandria,  and  back 

Trieste,  Corfu,  Syria,  Constantmople,  and  back 

C. — Course  with  speed  of  8  knots. 

Trieste,  Pola,  Dalmatia,  Durazzo,  and  back 

Trieste,  Pola,  Dalmatia,  Albaina,  Prevera,  and  back 

Trieste,  Pola,  Cattaro,  and  back 

Fiume,  Lussin.  Zaia,  Cat  tan),  and  back 

Fiume,  Lussin,  Zara,  Cattaio,  Albania,  Patras,  and  back 

Trieste,  Fiume,  amtbac'k 

Fiume,  Trieste,  and  back 

Fiume,  Se<;na,  Zara,  aud  return 

Fiume,  Zara,  Aucona,  and  back 

Trieste,  Fiume,  Corfu,  Syria,  Smyrna,  and  back 

Trie.ste,  Patras,  l'iia>us,  Volo,  Salonica,  Constantinople,  aud  return 

Constantinople,  Kustendji,  Galatz,  and  back 

Cou.sianliuople,  Trebizond,  aud  return 

Constautinople,  Sm.\rna,  Cyprus,  Beyrout,  Port  Said,  AJexandria,  and  return 

Alexandria,  Port  Saul,  aud  back 

Pirajus,  Syria  and  l>ack 

Syria,  Candia.  and  back 

Fiume,  Ancona,  Bari,  Messina,  Candia,  Lisbon,  Liverpool,  and  back 

Trieste,  Cevlon,  Calcutta,  and  back 

Trieste,  Aden,  Bombay,  Ceylon,  Singapore,  and  return 

Trieste,  Bombay,  and  return 


104 


52 
52 
52 
26 
26 
52 
52 
52 
26 
52 
26 
40 
12 
26 
26 
104 
52 
18 
6 
6 
3 


2,402 
2,356 


1,037 

1,488 

825 

705 

1,369 

272 

272 

252 

293 

2,280 

3,306 

858 

1,047 

2,704 

320 

156 

319 

6,000 

12,  260 

13,750 

8,680 


The  iudemuity  is  fixed  by  article  2  of  the  convention  in  the  following  proportions: 

Florins. 

For  the  Constantinople-Varna  line 4.  00 

For  the  Trieste-Alexandria,   Trieste-Constantinople,  Trieste-Bombay,  Fiume- 

Liverpool,  Trieste-Calcutta 1.80 

For  the  Singapore  line 2. 50 

For  other  courses 1, 50 

However,  it  is  established  that  the  subsidy  shall  not  exceed  2,000,000  Austrian 
florins. 

The  Lloyd  steamers  have  these  privileges: 

1.  Are  exempt  from  payment  of  tonnage  duties. 

2.  Can  take  cargoes  at  night. 

3.  Can  embark  health  officers  to  abbreviate  quarantine. 

4.  Have  the  right  in  national  ports  of  most  commodious  place  to  load  and  unload. 

5.  Every  three  mouths  are  reimbursed  the  taxes  paid  in  making  the  passage  of 
Suez  Canal. 

The  Lloyd  Company  on  their  part,  are  bound — 

1.  To  furnish  themselves  with  28,000  tons  of  coal  per  year  from  the  Austro-IIun- 
garian  mines;  always,  however,  that  the  price  shall  not  exceed  that  of  Euglish  coal, 
on  the  hypothesis  that  the  heating  flower  of  national  coal  is  to  that  of  English  as  85 
to  100. 

2.  To  accord  gratuitous  passage  to  the  employes  and  dependants  of  the  minister  of 
foreign  afi'airs. 

3.  The  agency  of  the  company  must  bo  filed  abroad,  wliere  permitted,  by  postal 
officials  furnishing  security  for  good  conduct. 


272 


TliADE    AND    TRANSPORTATION    BETWEEN 


4.  The  Lloyd  steamers  receive  gratuitously  the  mails,  and  are  subjected  to  fines  for 
delays,  iuiVactions— fines  wliich  v;iry  from  15  to  120  florins. 

5.  They  are  obliged  to  receive  aboard  the  sailors,  prisoners,  and  the  indigent  who 
are  consigned  to  them  by  the  imperial  and  royal  consuls. 

G.  To  acquire  steam-ships  from  abroad  the  consent  of  the  minister  of  foreign  affairs 
is  necessary. 

7.  The  steamers  must  have  an  average  capacity  of  1,'200  tons  cargo,  or  about  850 
register. 

The  forn)ation  of  this  old  and  powerful  company  dales  back  to  1833,  but  it  intro- 
duced steamers  only  in  1836,  making  the  service  between  Trieste  and  the  ports  of 
the  Adriatic,  Mediterranean,  and  Black  Sea.  Until  186.5  its  capital  was  3,000,000 
florins.  On  September  14,  1865,  it  was  increased  to  12,600,000,  divided  into  24,000 
bonds  of  525  florins  each.  In  its  origin  the  company  was  promoted  by  the  city  of 
Trieste,  which  guarantied  the  interest  upon  the  capital.  Afterwards  the  Austrian 
Government  gave  it  its  protection.  To  form  a  clear  idea  of  the  importance  of  the 
operatious  of  the  company  it  will  be  sufficient  to  examine  the  following  table,  show- 
ing the  service  iierformed  in  1681 : 


363 

18 

1 

241 
152 
684 
160 


1,565 


Lines. 


Of  the  Levant 

Of  India 

Of  the  Ked  Sea 

Tlie  Danube  .nnd  Bhick  Sea 

The  Arcbipolago 

Thu  Adriatic  coast 

Casual 

Total  in  1881 


Miles  run. 


G19,  090 
262,167 
4,115 
158,  394 
33,  649 
314,  750 
218,  720 


1,  610,  885 


Number 
of  passen- 
gers. 


94,  057 
5,  866 
1,844 

44,  544 

7,  198 

120,  425 

19,  632 


293,  568 


Aloneys  re- 
ceived in 
florins. 


43,  795,  014 

524,  271 

111,678 

10,- 237, 117 

2,316,705 

47,017,554 

1,  059,  486 


105,  091,  825 


Weight  of 
merchan- 
dise in 
quintals. 


Number 
of  head 
of  beasts. 


2, 102,  898 

513,  004 

6,691 

1,110,189 

58,  482 

856,  186 

418,006 


5,  065,  516 


6,  5U 
673 


8,954 

6 

912 

2,665 


19,  725 


The  company's  fleet  was  composed  on  the  31st  of  December,  1881,  of  74  steamers,  of 
a  total  tonnage  of  88,224  and  a  total  horse-power  of  17,930.  Their  original  cost  was 
68,988,125  francs,  but  by  reason  of  depreciation  they  figure  in  the  company's  balance- 
sheet  at  30,101,500  francs.  At  the  above  date  there  were  in  the  course  of  construction 
four  other  steamers  of  heavy  tonnage.  The  service  in  1881  yielded  a  net  profit  of 
5,438,870  francs. 

The  Lloyds  is  the  only  company  subventioned  by  the  Imperial  Government. 

The  Company  Adria,  whoso  jjrincipal  oflico  is  at  Fiume,  recieves  from  the  Govern- 
ment of  Hungary  a  subvention  of  150,000  florins  per  year,  under  a  contract  made  with 
the  Hungarian  minister  of  agriculture,  indu.strj^,  and  commerce,  January  31,  1882. 
Its  capital  is  12,000,000  of  florins.  The  company  under  the  contract  is  bound  to  make, 
from  January  1,  1882,  to  December  31,  1891,  each  year,  at  least  one  hundred  and  fifty 
voyages  between  Fiume  and  the  ports  of  Western  Europe,  viz:  Every  month  two 
voyages  from  Fiume  to  Liverpool  and  Liverpool  to  Fiume. 

Every  month  one  voyage  from  Fiume  to  London  or  Hull  or  Leith  ;  London,  Hull, 
or  Leith  to  Fiume;  Fiume  to  Bordeaux;  Fiume  to  Marseilles ;  Marseilles  to  Fiume ; 
Fiume  to  Glasgow,  and  Glasgow  to  Fiume. 

The  company  binds  itself  to  maintain  regular  communications  with  Havre,  Rouen, 
with  the  Irish  j)ort8,  and  such  other  ports  of  western  Europe  as  shall  bo  designated 
by  the  minister,  provided  they  are  assured  at  least  half  a  cargo  at  current  rate  of 
freights  for  steamers  in  the  Adriatic.  Such  voyages  will  be  made  independently  of 
the  one  hundred  and  tifty  above  mentioned.  However,  the  company  is  not  bound  to 
make  more  than  two  hundred  voyages  per  year.  Nevertheless,  the  company  can  be 
compelled  by  the  minister  to  make  additional  voyages  for  the  ports  of  western 
Europe,  provided  they  are  assured  half  a  cargo  at  cufrcttt  freights  and  with  a  subveu- 


THE    UNITED    STATES    AND    LATIN    AMERICA.  273 

tlon  snpplementary  of  600  florins  per  voyage.  The  company's  stoamors  mnst  have  an 
averagoof  800  tons  rogistor;  the  freij^hts  from  and  to  Finme  must  not  bo  higher  than 
those  of  the  company  from  and  to  othor  nortli  Adriatic  ports.  A  fine  of  r>00  tlorins  is 
established  for  every  delay  in  departure  or  arrival  not  Justified.  They  are  to  receive 
and  transport  at  their  own  expense  sailors  from  the  maritime  academy  of  Fiumc,  but 
not  more  than  two  on  any  one  steamer.  The  company  are  to  have  for  the  service  of 
1882  five  steamers,  with  a  total  of  4,000  tonnage,  and  are  to  add  a  new  one  each  year, 
of  800  tons,  until  they  own  twelve.  The  Hungarian  Government  is  to  give  prefer- 
ence to  the  Adria  Company  for  such  new  voyages  to  the  west  as  it  may  see  lit  to 
establish  as  well  during  the  present  convention  as  after  its  expiration. 

Spanish  Subsidies. 

For  postal  subventions  they  have  in  Spain  the  auction  system.  There  are  several 
contracts  of  different  dates,  which  on  a  average  run  eight  years.  The  first  is  for 
the  steam  service  between  Cadiz,  Santa  Cruz  of  Teuerift'e,  and  Palmas  of  the  Great 
Canaries.  The  subsidy  can  not  be  more  than  248,840  francs  per  year.  The  voyage  go- 
ing must  be  done  within  sixty-eight  hours;  returning,  within  seventy-four.  The 
average  speed  must  be  from  11  to  11^  knots,  and  tonnage  from  700  to  1,200.  For  every 
delay  not  justified  the  tine  is  fixed  at  250  francs  for  every  six  hours.  The  number  of 
steamers  must  be  three,  and  the  voyage  going  and  coming  is  every  two  months.  The 
second  is  for  the  transport  of  the  mails  between  Tarifa  and  Tangiers,  runs  four  years, 
and  grants  an  annual  subsidy  of  7,080  francs.  The  third  is  for  the  service  between 
Barcelona  and  Palma,  between  Valencia  and  Palma,  and  between  Alicante  and  Palma, 
touching  at  Iviza ;  that  is,  three  round  voyages ;  steamers  to  be  150  horse  power ;  the 
company  to  have  at  least  four  steamers.  The  subsidy  is  97,425  francs  per  year  ;  the 
contract  runs  six  years  from  August  10,  1872,  to  be  thereafter  extended.  The  fourth 
is  for  the  weekly  mail  service  between  Barcelona  and  Mahon,  and  from  Palma  to 
Mahon,  and  rice  versa.  The  subsidy  is  fixed  at  56,000  francs  per  year.  The  passage 
from  Mahon  to  Palma  must  be  made  in  twenty  hours,  and  that  from  Palma  to  Mahon 
in  thirteen.  The  contract  runs  eight  years  from  the  end  of  April,  1879.  The  fifth 
runs  ten  years  from  November  1,  1881,  and  accords  a  monthly  subsidy  of  45,000  francs 
for  the  following  lines:  Havana  and  Porto  Rico,  touching  Nuritas,  Gibare,  Baracoa, 
and  Porto  Plata,  Mayaguez,  Pome,  Porto  Principe,  and  Santiago  de  Cuba;  Havana 
and  Vera  Cruz,  touching  Progreso ;  Havana  and  Colon,  departing  from  Santiago  de 
Cuba,  and  touching  Kingston  and  Barranquilla ;  Havana  and  Laguayra.  The  first  one 
line  has  three  departures  per  month,  the  others  are  only  monthly.  The  ships  must  be 
at  least  1,50  tonnage.  There  are  heavy  fines  and  severe  rules,  as  well  for  the  postal 
service  as  for  the  transport  of  passengers.  The  sixth  is  for  the  mail  service  between 
Spain  and  the  Antilles,  and  calls  for  three  monthly  departures,  two  from  Cadiz  and 
from  San tander  for  Havana,  awA.  vice  versa.  The  ships  must  be  2,000  tons  register  each, 
and  number  twelve.  Speed  required  is  11  miles  per  hour,  and  the  voyage,  going,  to 
be  eighteen  days  ;  returning,  seventeen  days.  Tlie  seventh,  of  the  19th  August,  1879, 
is  for  the  service  between  Spain  and  Manila;  runs  ten  years,  and  with  a  subsidy 
which  can  not  exceed  100,000  francs  for  every  round  voyage.  The  voyages  must  be 
completed  in  forty  days  in  good  seasons,  and  in  forty-three  in  bad.  The  itinerary 
calls  for  8,139  miles.  The  departure  is  monthly,  and  is  from  Cadiz  and  from  Manila, 
touching  Carthagena,  Barcelona,  Port  Said,  Suez,  Aden,  Pont  de  Galle,  Singapore.  It 
calls  for  six  steamers,  and  speed  11  knots.  Heavy  security  and  severe  fines  are  estab- 
lished for  the  exact  performance  of  the  contract. 

BRITISH  SUBSIDIES. 

The  postal  and  transport  services,  of  which  table  follows,  are  performed  by  several 
companies.  The  principle  ones  are :  The  Royal  Mail  Steam  Packet  Company,  which 
makes  the  service  of  Brazil,  of  La  Plata,  from  Southampton,  and  that  from  St.  Thomas 

S.  Ex.  54 18 


274  TRADE    AND    TRANSPORTATION    BETWEEN 

to  Porto  Rico.  The  Pacific  Steam  Navigation  Company,  running  between  Liverpool, 
Brazil,  Plata,  Chili,  and  Peru,  and  from  Panama  to  Valparaiso.  The  Union  Steam- 
ship Company,  limited,  which  makes  the  service  for  the  Cape  of  Good  Hope  and  Zan- 
zibar, leaving  and  returning  to  Plymouth,  touching  every  month  the  islands  of  As- 
cension and  St.  Helena,  completing  the  voyage  in  thirty-eight  days.  The  British 
India  Steam  Navigation  Company,  running  between  Aden  and  Zanzibar.  The  West 
India  and  Pacific  Steamship  Company,  limited,  and  the  steamships  of  Bernard  Hall 
and  Arthur  Bower  Farwood,  which  make  the  service  from  Liverpool  to  Laguayra  in 
twenty-four  days ;  from  Liverpool  to  Vera  Cruz  in  thirty-four,  stopping  at  Porto 
Principe;  and  from  Liverpool  to  Santa  Marta  in  twenty-eight.  The  Cunard  Com- 
pany, which  performs  the  service  from  London  to  Halifax  and  the  island  of  St.  Thomas, 
and  that  from  Liverpool  to  New  York  and  Boston.  The  Liverpool,  Brazil  and  River 
Plata  Steam  Company,  running  between  Liverpool,  Brazil,  aud  the  Rio  de  la  Plata. 
The  steam-ships  of  William  Inman  make  the  service  between  Liverpool  and  New  York 
via  Queenstown.  The  Southeastern  Railroad  Company  and  the  London,  Chatham, 
and  Dover  Railroad  Company  run  steamers  between  Dover  and  Calais. 

The  principal  clauses  in  the  contracts  with  these  companies  are,  that  any  differences 
are  to  be  arbitrated;  to  have  steam-ships  of  determinate  dimensions  and  speed;  not 
to  assign  the  concessions  to  others,  and  to  pay  fines  in  case  of  delays.  The  subsidy- 
is  not  based  on  the  distances  run,  but  on  the  greater  or  less  service  rendered  by  the 
company  to  the  English  postal  department,  and  is  fixed  by  private  contract. 

Service  of  English  postal  packets,  and  sums  paid  for  the  postal  service  for  the  year  ending 

March  31,  1882. 

Pounds  sterling. 

United  Kingdom 109,577 

Europe 16,000 

America 190,760 

Africa 18,800 

Asia 360,000 

Cyprus 9|000 

EXPENSES   OF   ESTABLISHMENTS. 

Salaries,  wages 832 

Travelers 65 

Rents '■^^ 

Expenses  of  ports  and  docks 2,500 

Casual  expenses 70 

Pensions 133 

Total 707,767 

Sums  paid  by  the  Governments  of  India  and  Belgium 90,500 

Total  of  subventions  paid  by  the  English  Government 617,267 

DETAILS. 

United  Kingdom,  Holyhead,  and  Kingstown 85,000 

Aberdeen  and  Lerwick 2, 200 

Scrabster  and  Stromness 2,000 

Southampton  and  Channel  Island 6,500 

Liverpool  and  Isle  of  Man 4,500 

Penzance  and  Scilly 450 

Southampton  and  Cowes 150 

Portsmouth  and  Ryde 800 

Dunvegan  and  Lochmaddy -. 420 

Oban  and  Eort  William  and  Tobermory,  Strome  Ferry,  Portree,  etc 290 

Xerbival  and  North  Orkney  lalauds 120 


THE    UNITKD    STATES    AND    LATIN    AMERICA.  275 

Pounds  sterling. 

Strcniway  and  Ullapool 1,300 

Androsan  ;i nd  ArJau 350 

Greenock,  Port  Ellen,  and  Portaskiug  Islay 800 

Greenock,  Rotht!Hay,  and  Ardrishing 1,800 

Tobermory,  Coll,  and  Eyreo 95 

Oban  and  Auchnacraig 125 

Oban  and  Fort  William 600 

Obau  and  Tobermory 500 

Weymouth  and  Channel  Island 50 

Shetland  and  Fair  Islands 137 

Shetland  and  Fonla 80 

Greenock  and  Lochgalhead 100 

Inverness  and  Fort  Augustus 210 

Allowance  for  additional  service 100 

Total 109,577 

EUROPE. 

Dover  and  Calais  (contract  March  25,  1»78) 8,  800 

Excess  of  premium  over  penalty 2,  700 

11, 500 

Dover  and  Ostend  (payment  by  Belgium) 4,500 

Total 16,000 

AMERICA. 

United  Kingdom  and  United  States 71,000 

Halifax,  Bermuda,  and  Jamaica 17,500 

England  and  West  Indies 81,700 

Twil's  Island  and  St.  Thomas 300 

Belize  and  New  Orleans 1,760 

Liverpool  and  Callao 6,200 

Liverpool  and  Porto  Cabello,  Tampico  and  S.  Marta 1, 200 

Southampton,  Brazil,  and  La  Plata 5,700 

Panama  and  Valijaraiso 5,500 

Total 190,869 

Deduction  of  amount  of  penalty 100 

Total 190,760 

AFRICA. 

West  coast  of  Africa  and  England 8,800 

East  coast  of  Africa,  Aden  and  Zanzibar,  Table  Bay  and  Zanzibar 10,000 

Total 18,800 

ASIA. 

East  India  and  China,  between  Brindisi  and  Bombay  (via  Suez),  touching 
Aden,  between  Brindisi  and  Shanghai  (via  Suez),  touching  Aden,  Pout  de 

Galle  and  Colombo  Peuang,  Singapore,  Hong-Kong 360,000 

CYPRUS. 

Laniaca  and  Alexandria , - ,.. ..,, ......  9,000 


276  TRADE    AND    TKANSrOKTATlON    BETWEEN 

THE   PENINSULAR  AND   ORIENTAL   COMPANY. 

In  1837  the  English  Governmout,  for  political  and  commercial  reasons,  began  a  pos- 
tal service  between  the  United  Kingdom  and  Iiulia,  which  was  performed  for  the 
most  part  by  sailing  vessels  of  the  navy.  This  method  proving  expensive  and  nnsat- 
isfactory  was  given  up;  the  admiralty,  on  the  22d  of  August,  1837,  contracted  with 
Captain  Bowme,  agent  of  a  company  which  afterwards  took  the  name  "Peninsular 
and  Oriental,"  for  a  weekly  service  between  Falmouth  and  Gibraltar,  touching  Vigo, 
Oporto,  Lisbon,  and  Cadiz,  and  accorded  a  subsidy  of  29,000  pounds  sterling  per  year. 
In  1840  the  line  was  extended  to  Malto  and  Alexandria,  with  an  increase  in  the  sub- 
sidy to  32,000  pounds  sterling,  the  company  binding  itself  to  put  on  steamers  of  from 
1,400  to  1,600  tonnage,  with  400  to  450  horse-power,  and  so  constructed  as  to  carry 
heavy  artillery  for  war  purposes,  the  departures  to  be  monthly  and  the  passage  to  be 
made  in  fifteen  days.  This  company  having  been  re-enforced  by  annmberof  heavy  cap- 
italists, on  September  24,  1842,  entered  into  a  contract  for  a  service  between  England 
and  India,  andin  that  month  the  firststeamer  of  this  line  left  Southampton  for  Calcutta, 
followed  soon  by  the  Bentick  and  Precursor,  each  of  1,800  tons  and  250  horse-power. 
The  forty-first  yearly  balance  sheet  of  the  company,  being  for  the  year  1881,  shows 
that  the  company's  fleet  is  composed  of  fifty-one  steam-ships,  comprising  six  in  course 
of  construction.  Their  total  capacity  is  162,312  tons,  with  total  of  28,000  horse- 
power. There  are  also  eighteen  small  boats  with  1,257  tonnage,  making  the  subsidiary 
service  between  ports.  The  yearly  distance  run  on  all  the  lines  exceeds  2.000,000  of 
miles,  which  is  not  so  surprising  when  it  is  considered  that  the  distance  run  from 
London  to  Yokohama  is  11,395  miles,  and  that  between  London  and  Sidney  is  12,126 
miles. 

THE   ROYAL   MAIL. 

In  1839  Mr.  Irving,  in  his  own  name  and  in  that  of  several  merchants  and  bankers 
of  London,  proposed  to  the  English  Government  the  formation  of  a  maritime  com- 
pany for  the  transportation  of  the  mails,  passengers,  and  merchandise  to  the  An- 
tilles and  Central  America,  using  large  steamers  of  400  horse-power,  and  that  there 
should  be  accor^'ed  an  annual  subvention  of  240,000  pounds  sterling.  This  prop- 
osition was  accepted  by  convention  of  September  26,  1839,  by  which  it  was  stip- 
ulated that  there  should  be  in  the  line  fourteen. steamers,  each  of  400  horse-power, 
and  that  the  yearly  distance  run  should  not  be  less  than  700,000  miles.  The  company 
not  finding  itself  able  to  operate  on  so  large  a  scale,  the  Government  reduced  its 
demand  to  ten  steamers  and  to  395,000  miles  of  distance,  but  left  intact  the  subven- 
tion of  240,000  pounds  sterling.  The  line  was  in  full  operation  in  1840.  The  steamers 
were  wooden  side-wheelers,  making  less  than  8  knots  per  hour,  and  the  service  was 
so  unsatisfactory  that  many  claims  were  made  against  the  company  for  delays.  Up 
to  1848,  by  reason  of  the  loss  of  some  of  their  best  steamers,  the  average  return  was 
about  3i  per  cent.  After  that  year  things  went  better,  and  in  August,  1850,  the  ad- 
miralty signed  a  new  contract  with  the  company,  by  which  the  line  was  extended 
to  Brazil,  which  extension  was  in  operation  by  January  1,  1851.  This  new  contract 
increased  the  subvention  to  270,000  pounds  sterling,  and  required  that  there  should 
be  fifteen  steamers  in  the  service,  capable  of  carrying  heavy  cannon:  ten  of  400 
horse-power,  four  others  of  250  horse-power,  and  a  small  one  of  60.  lu  case  of  war 
the  Government  reserved  the  right  to  acquire  and  use  the  steamers  of  the  company, 
at  a  price  to  be  fixed  by  arbitration,  and  required  £50,000  security  for  the  perform- 
ance of  the  contract. 

In  1852  the  capital,  which  in  the  beginning  was  £890,000  sterling,  was  increased  to 
£1,423,460  sterling. 

The  old  conventions  having  expired  December  31,  18.56,  new  ones  were  stipulated 

with  the  admiralty,  but  with  a  diminished  subvention.     The  twelve  years  from  1854 

to  the  end  of  1865  gave  the  following  results  : 

Ponnds  sterling. 

Average  yearly  receipts 822,224 

Average  yearly  expenses - 672,892 

Netprofita 149,33^ 


THE    UNITED    STATKS    AND    LATIN    AMERICA  277 

If,  therefore,  tlie  company  had  not  received  t'ze  Government  subvention  during 
the  said  twelve  years  it  would  iuivc  lost  money. 

The  company's  fleet  connted  on  April  14,  1882,  twenty-five  steamers,  having  a  total 
tonnage  of  62,843,  and  a  total  horse-power  of  10,280.  The  balance  sheet  for  1881 
gave  the  following  result: 

Received :                                                                                                                     Pounds  sterling. 
Government  subvention 97, 135 

For  transport  of  merchandise,  passengers,  and  money 693,169 

Total 790,304 

Expended 753,811 

Net  profit -56,493 

The  loss  of  tlie  steamer  Tiber  and  the  reduction  of  the  Government  subvention  to 
about  one-half  what  it  was  in  1865  (it  was  £209,000  in  that  year),  contributed  to  de- 
press in  an  exceptional  manner  the  company's  profits  in  1881. 

It  is  unnecessary  to  give  the  details  of  subsidies  paid  by  the  Cunard  and  other  com- 
paniea. 

Belgian  Subsidies. 

There  are  at  present  two  lines  subventioned  by  the  Belgian  Government,  as  follows : 

1.  The  line  of  steamers  between  Antwerp  and  New  York  having  an  obligatory 
■weekly  service  in  both  directions  and  between  Antwerp  and  Philadelphia  with  a  tri- 
weekly departure  from  each  place.  This  is  the  Red  Star  Line,  which  is  guaranteed 
500,000  francs  per  year  for  the  postal  service. 

2.  The  lino  between  Antwerp  and  La  Plata,  and  Antwerp  and  Rio  Janeiro. 
This  is  operated  by  the  Sud  Araericaine  Corapaguie,  aud  makes  three  voyages  per 
month  each  way,  for  which  the  Government  guarantees  the  sum  of  500,000  francs  per 
year.  The  Government  does  not  accord  bounties  by  the  course  calculated  on  the 
number  of  leagues  run;  it  guarantees  only  a  minimum  of  return  for  the  postal  serv- 
ice. On  the  other  hand,  the  lines  in  question  have  and  must  have  a  postal  character 
before  everything  else.  It  is  not  simply  an  accessory,  and  the  postal  service  must 
not  suffer  in  any  way  by  commercial  traffic  or  passenger  transportation.  The  dura- 
tion of  the  subventions  is  fifteen  years  ;  both  parties  reserve  the  right  to  dissolve  the 
contract  from  the  end  of  the  ninth  year.  The  Government  exacts  as  follows:  First, 
the  Belgian  flag ;  second,  such  number  of  steamer  of  the  first  class  as  will  enable  the 
company  to  make  the  service  without  iuterrnption ;  third,  a  minimum  tonnage  of 
2,700  tons  ;  fourth,  different  classes  for  passengers;  fifth,  prompt  departures  ;  sixth  a 
prescribed  speed,  and  heavy  fines  for  each  delay. 

The  above  contracts  were  made  in  1873  and  1876,  and  were  slightly  modified  in  1882. 

Dutch  Subsidies. 

The  lines  subventioned  by  the  Government  of  the  Netherlands  are : 

1.  The  line  from  Flessinga  to  Queensborough,  under  the  direction  of  the  Zeeland 
Company. 

2.  The  lino  from  Amsterdam  to  Batavia,  uuder  the  direction  of  the  Netheiiand 
Company 

3.  The  different  lines  in  the  Indian  Archipelago. 

4.  The  line  from  the  Island  of  Java  to  China,  under  the  direction  of  the  India- 
Netherland  Steam-ship  Company. 

The  total  sum  of  the  subventions  is  705,000  florins  ;  that  is,  for  the  first  three  lines 
for  every  mile  1.93  florins,  0.33  florin,  3.90  florins.  The  subvention  of  the  fourth  line 
is  10,000  florins  per  voyage  ;  this  service  is  once  in  three  mouths,  aud  will  be  monthly, 
which  will  make  the  total  subvention  785,000  florius. 

All  the  aforesaid  lines  are  postal  and  commercial.  The  subvon  tion  to  the  Flessinga- 
Queensborough  line  and  the  Amsterdam-Batavia  line  is  accorded  exclusively  for  the 


278  TRADE    AND    TRANSPORT ATfOX    liHTWEKN 

transport  of  letters,  &c.,  of  the  postal  departmont,  while  the  subvention  accorded  to 
the  Java-China  line  and  to  that  of  tho  Indian  Archipelago  has  a  couimercial  scope. 

The  contract  for  the  Flessinga  and  Queeiisborough  line  was  made  for  ten  years  from 
May  15,  1878,  and  that  for  the  Amsterdam  and  Batavia  line  for  an  indeterminate 
time,  commencing  1877.  The  contract  for  the  line  in  the  Indian  Archipelago  is  for 
Cfteen  years  from  January  1,  1876,  while  that  for  tho  Java-China  line  dates  from  1880. 
From  what  precedes  it  results  that  in  the  Netherland  colonies  the  companies  are  sub- 
ventioued  for  a  commercial  as  well  as  postal  purpose,  while  in  Holland  itself  the  sub- 
vention is  strictly  postal.     The  subventions  are  accorded  by  private  contract. 

SwEDisu  AND  Norwegian  Subsidies. 

The  Italian  minister  at  Stockholm,  in  transmitting  the  following  list,  remarks  that 
for  the  postal  service  made  by  steamers  between  the  dilferent  Swedish  ports  there  is 
conceded  an  indemnity,  which  varies  according  to  the  importance  of  the  lines,  and 
which,  for  the  most  part,  represents  but  an  insignificant  part  of  the  expenses  of  nav- 
igation. Only  the  Malmo  Stralsund  line  is  subsidized  on  a  large  scale.  Under  a  con- 
vention concluded  between  liormany  and  S  weden  February  24,  18(39,  the  Swedish 
Government  assumed  the  obligation  to  pay  to  the  German  postal  administration, 
for  a  regular  steamship  service  between  the  said  two  ports,  half  of  the  expenses  of 
navigation  and  a  yearly  sum  of  2,000  thalers  for  repairs  to  steamers  in  the  service. 

Table  of  subventions  accorded  by  the  state  to  private  navigation  of  steamers  for  the  service 

between  different  Norwegian  ports. 

Crowns. 

Fjordene  to  Stavanger: 

For  passage  on  Fjordeiie  to  Ryfylke 12,000 

For  passage  on  Hogsfjord 1,000 

Sondre  Bergenhus : 

To  steamer  Karmsund  for  passage  on  exterior  side  between  Bergen  and 

Haugesuud 3,000 

For  passage,  Bergen-Masfjord 2,400 

To  the  North  Bergenhus : 

Steam-ship,  forpassage  upon  Fjordene  to  North  Bergenhus 35,000 

To  steamer  Molde,  for  passage  on  Fjordene  to  Komsdals C,  500 

For  mainleuance  of  steamer  between  Trondhjem-Hitteren  and  Froyen..       7,000 

Upon  Fjordene  to  North  Troudlijines: 

For  passage  on  Anaseufjord 800 

For  passage  to  the  interior,  Foldenfjord 4,000 

Upon  Fjordfue  to  Nordlands: 

To  steanjer  Porghatten,  for  passage  to  Biudaleu,  Vego,  and  Veltjorden..     12,000 

To  steamer  Ilegelauds,  for  passage  to  Vessen  and  Kaiiontjord 16,000 

To  llegeland  Steam-ship  Company,  for  passage  on  Fjordene  to  Salteus 

Fodgeri 14,000 

To  the  Tromso  Aints  Company,  for  passage  on  Fjordene  to  Tromso 58, 000 

On  Fjordene  to  Fiunmarkins: 

For  passage  to  Altenfjord 23,000 

For  passage  to  Vestilinmarkske  Fiskvoer 10,  000 

To  the  Keih-rie,  for  «te:iiiier  Varanger,  for  I)a8sage  to  Varangertjord 25, 100 

To  the  Bergeuske  and  Nordeiifjilske  Company: 

On  the  line  Bergen-Throndlijeni,  Ilaiiimerfcst-Vadso 110,000 

On  line  Sofoteu-Vosteralleu-Ofote,   with  two  boats  in  fishing  time  and 

one  at  other  times 57,000 

For  passage  to  Otterens  Vasdrag 1,600 

To  steamer  Telegraph  to  Selbosoen 1,000 

Indemnities  to  ])ersons  employed  for  tlie  Departmont  of  the  Marino  and 
Postos,  to  supervise  the  steamers  subvontionod  and  for  sending  of  tele- 
grams  - - -"      8,000 


THE    UNITED    STATES    AND    LATIN    AMERICA.  279 

Taile  of  appropriations  figuring  in  the  Norwegian  budget  for  the  year  1881-188*2,  for  sub- 
sidies to  steamers  performing  the  postal  service  on  the  following  lines: 

Crowns. 

Fredericksbald,  Stronistadt 150 

Frederickstadt,  Hoaloerue 400 

Cbristiania,  BundiQord SO 

ChristianJa,  Christiaossand 22,000 

Christiauia.  Bergen 37, 7G0 

Cbristiauia,  Cbristianssaud,  Bergen,  Tbrondbjem,  Tromso 100,000 

Cbristiania,  Kjobenbavn 780 

Cbristiania,  Hamburg 2,600 

Drammen,  Maas 1,440 

Horten,  Holmestrand -. 70 

Skein,  Langesund ^ 1,440 

Porsgmud,  Bolvig-Herre 70 

Tredestrand,  Boroen 2,300 

Christianssand,  Frederiksbavn,  and  Frederiksbavn,  Cbristianssand,  Bergen  71, 800 

Cbristianssand,  Mandal,  Svinor,  Spangereid 180 

Stavanger,  Bergen 6,656 

Stavanger,  Hardanger 2, 500 

Stavanger,  Hoitingso 3,  328 

Skudesnoesbavn,  Renneso,  Stavanger,  Hogsfjord 520 

OnRyfylske  Fjorde 3,200 

Bergen,  Hangesand,  and  Oblandsvaag 900 

Bergen,  Hardanger ^ 4,800 

Bergen,  Fjorddestrikleme,  in  Soudborland. 4,000 

Bergen,  Hans,  Hammer,  Hosanger,  Salbus 800 

Bergen,  Bolstadoren 600 

Bergen,  Logn,  Bergen,  Sondfjord  and  Bergen,  Nordfjord 26,160 

Lerdal,  Lyster  and  Lerdal,  Gudvauger 10, 000 

On  Son  and  Nordfjord 2,400 

Bergen,  Manger,  Bovaayen,  Ostbeini  Masfjord 2,000 

Bergen,  Lygren,  Lindaos,  Leim 1,600 

Bergen,  Fane,  Os,  Strandvik,  Fuse,  Haalandsdal,  Sammanger 2,400 

Upon  Sondmore,  Roradalske,  Fjorde 1,300 

Upon  Fjirdene  in  Romdals  Fodgeri 1,500 

Upon  Fjordeue  in  Nordmore  Fodgeri 13,000 

Tbrondbjem,  Hamburg 22,000 

Tbrondbjem,  Cbristiansund 8, 820 

Tbrondbjem,  Indberred 4,000 

Tbrondbjem,  Hitteren,  Froyen 2,000 

Tbrondbjem,  Orkedal 230 

Bergen,  Tbrondbjem,  Vadso 150,000 

On  Vefsen  and  Ranenfjordene 2,000 

On  Saltenske-Fjorde,  and  on  Foldeufjorden 4,000 

Brono,  Bindalen,  Fiskerosen,  Vigo,  Velfjorden 2,000 

Lofoten,  Vesteraalen,  Ofoten 20,000 

On  Tromso,  Amte  Fjorde 7,000 

OnAltenfjord 2,500 

On  VarangeQord 900 

OnMjosen 15,000 

OnOjeren 150 

On  Kroderen 1,200 

OnSpirillen 200 

On  Randsfjorden 1,200 


280 


TKADE    AND    TRANSPORTATION    BETWEEN 


Crowns. 
On  Pinsjoen IBO 

On  Nord.sjovaudet -. —  1, 100 

On  Flaa,  Havidost-id,  and  Baudalsvaudene 480 

To  divers  steani-slups,  to  transport  the  mails  to  foreign  countries 2,236 

Total 586,000 

Italian  Subsidies. 

The  Italian  steam-ship  companies  Florio  and  Rubattino  were  consolidated  by  the 
terms  of  a  convention  with  the  Government  dated  June  15,  1877,  and  together  receive 
from  the  Government  an  annual  subvention  of  8,139,576  francs,  or  an  average  of  16.84 
francs  per  leagne,  the  total  of  leagues  run  being  483,252.  The  tarill' establishes  from 
0.93  franc  to  0.66  franc  for  passengers  of  the  first  class,  from  0.62  franc  to  0.44  franc 
for  passengers  of  the  second  class,  and  from  0.31  to  0.22  for  those  of  the  third  class  for 
each  league,  exclusive  of  food.  For  merchandise,  according  to  category  and  accord- 
ing to  distance,  freights  vary  from  1.50  to  10  francs  per  quintal.  The  speed  varies  ac- 
cording to  the  lines  from  8  to  10  knots  per  hour,  aud  so  also  according  to  the  line 
varies  the  capacity  of  the  ships,  i.  e.,  from  200  to  1,300  tonnage.  The  carriage  of  the 
mails  is  obligatory.  Fines  of  from  50  to  100  francs  ior  every  hour  of  delay  in  starting 
and  arriving  not  justified  are  established.  The  company  is  obliged  to  transport  at 
half  price  civil  and  military  employds  and  prisoners. 

They  possessed  at  the  beginning  of  the  present  year  ninety-two  steamers,  with  a 
total  tonnage  of  128,330.  They  have  in  course  of  construction  the  following  steam- 
ships :  The  China,  of  5,000  tons,  the  Japan,  of  5,000  tons,  and  the  Java,  of  3,600  tons, 
in  English  ship-yards;  and  the  Birmania,  of  3,200  tons,  in  Orlando's  yard  at  Leghorn. 

The  subvention  applies  to  the  following  lines  of  this  company  : 

1.— THE  SARDINTAN  AND  TUSCAN  ARCHIPELAGO  LINE. 


Lines. 


u 

u 

t. 

^ 

© 

<0 

<o 

^6 

p. 

P< 

P.^ 

O    03 

t,.^ 

=s  >i 

CJ    > 

o 

C3 

B-" 

h^l 

i> 

H) 

G? 

318 

52 

16,536 

18 

230 

52 

11,  960 

18 

260 

52 

13,  520 

18 

126 

52 

6.  552 

18 

148 

52 

7,696 

18 

198 

52 

10,  296 

18 

162 

52 

8,424 

18 

178 

52 

9,256 

18 

140 

52 

7,592 

18 

104 

52 

5,408 

18 

30 

52 

1,560 

18 

8 

365 

2,920 

Leghorn,  Cagliari,  Tunis 

Leghorn,  Civita  Vt-ccliia,  Cagliari 

Siniscola,  Oroaoi,  Tartoli,  Cagliari 

Leghorn,  Portototres 

Leghorn,  Bastia,  Maddalena,  Portotorres 

Leghorn,  Civita  Veccliia,  Maildalena,  Portotorres 

Cagliari,  Miiraveia,  Tortoli,  Uiosei,  Siniscola,  Torraniiva,  Mad 

dalcua,  Santa  Teresa,  Portotorres 

Cagliari,  Naples 

Cagliari,  Palermo 

Leghorn,  Gorgona,  Capraia,  Marciana,  Portoferraio,  Kio  Marina, 

Portolongoni),  Pianosa,  Giglio,  Santa  Stefano 

Leghorn,  Portoferraio , 

Portoferraio,  Piombino 


Francs. 
297, OJS 
215,  280 
243.  360 
117,936 
138,  528 
185,  328 

151,6:t2 
161,608 
13G,  656 

97,  344 
28.  080 
30, 000 

1,  808, 400 


THE    UNITKl)    STATES    AND    LATIN    AMERICA. 
2.— THE  SICILY  LINE. 


281 


Lisoa. 


Palermo,  Messina 

Taranto,  Brindisi 

Naples,  Palermo 

Naples,  Messiua,  Kejrgio,  Messina 

Naples,  Diamante,  Belvedere,  Paolo,  Aniautea,   St.    Eufemla, 

Pizzo,  Messiua,  Reggio,  Messina 

Naples,  Paolo,  Amantea,   St.   Eufemla,   Pizzo,    Tropea,  Gioia, 

Tauro,  Messina,  Reggio,  Messina 

Naples,  Pisciotta,  Paolo,  Amantea,  Pireo,  Regirio,  Messina 

Naples,  Messina,  Reggio,  Messina,  Catania,  Syracuse,  Malta 

Palei'mo,  Trapani,  Farignana,  Marsala.  Pautalleria,  Tunis 

Palermo,  Cefalu,  St.  Stefano,  Capo  d'Orlaudo,  Patti  Milazzo, 

Messina 

Messina,  Catania,  Syracuse,  Malta 

Palermo,  Trapani,  Marsala,  Mazzara,  Sciacca,  Porto,  Empedocle, 

Palma,  Licata,  Terranova,  Scoglitti,  Pozallo,  Syracuse 

Mesaina,  Lipari,  Sabina 

Palermo,  Ustica 

Messina,  Reggio 

Porto  Empedocle,  Lampeduso 


82 
102 
112 
132 


162 

230 
154 


184 

38 

24 

6 

82 


52 

52 

305 

52 

52 

52 
52 
52 
52 

52 
52 

26 
104 

26 
730 


4,264 

5, 304 

40,  f-80 

6,864 

8,632 

8,124 

8,  008 

12,  792 

8,008 

4,576 
5,928 

9,568 
3,  952 
624 
4,380 
4,261 


Francs. 

81,061 

100,  77(; 

776.  720 

130,416 

161,  008 

160,056 
152, 152 
24H,  048 
152,  152 

86,  944 
71, 136 

181,  792 
75,  088 
11,8.56 
24,000 
17,  000 


2, 428,  2C0 


3.— TUNIS,  EGYPT,  INDIA,  CHINA  LINE. 


Tunis,  Susa,  Monastir,  Medlisa,  Sfax,  Gerba,  Tripoli,  Malta 

Genoa,  Leghorn,  Naples,  Messina,  Catania,  Alexandria 

Genoa,   Leghorn,  Naples,  Messina,  Catania,  Port  Said,  Suez, 

Aden,  Bombay 

Genoa,   Leghorn,  Naples,  Messina,  Catania,  Port  Said,  Suez, 

Aden,  Ceylon,  Penang,  Singapore 


452 
920 

3,064 

4,374 


23,  504 
47,  840 


36, 768 
17, 496 


32 


Francs. 
329,  056 
300,  COO 

1,  080, 000 
559,  872 

2,  268,  928 


4.— THE  LEVANT  LINE. 


Venice,  Ancona,  Freniti,  Viesti,  Bari,  Brindisi,  Piraeus,  Conatan 

tinople 

Palermo,  Messiua,  Catania,  Piraeus 

Piraeus,  Salonica 

Piraeus,  Smyrna 

Brindisi,  Corfu 

Ancona,  Zara 


830 

.'52 

448 

52 

176 

26 

140 

26 

78 

52 

58 

52 

4:1,  IGO 

21 

23,  290 

21 

4,570 

21 

3,640 

21 

4,  0.'i6 

21 

3,016 

21 

Franca. 
906,  360 
489,  216 
96,  096 
76,  440 
85, 176 
63,  336 

1,  716,  624 


The  Italian  Government  also  pays  500,000  franca  per  year  to  the  English  Peninsu- 
lar and  Oriental  line  for  a  weekly  postal  service  from  Venice  to  Brindisi,  and  vice 
veisa,  under  a  contract  by  which  that  company  obligates  itself  to  transport  the  mails 
gratuitously  between  Italy  and  Egypt,  and  also  to  carry  civil  and  military  employds, 
who  travel  by  reason  of  their  respective  services,  and  missionaries,  at  lialf  the  price 
established  for  other  passengers,  not  only  on  the  line  subsidized  but  also  on  the  com- 
pany's other  lines  from  Suez. 


282 


TRADE    AND    TRANSPORTATION    BETWEEN 


German  Subsidies. 

The  subventions  paid  for  the  Hues  from  Hamburg  to  Tampico,  from  Kiel  to  Koer- 
sen,  from  Lubeck  to  Malmoe,  from  Rostoik-Nykjoping,  and  from  Stralsund  to  Mal- 
moe,  amount  to  332,500  francs  per  year.  The  lines  from  Bremen  and  Hamburg  to  the 
United  States  are  compensated  on  the  basis  of  the  value  of  the  postal  service  ren- 
dered. 

Table  of  subventions  accorded  by  various  European  states  to  international  steam  navigation 

lines. 


II 

|.2| 
a  a  9 
a  01.2 

2S 

S  o 

gee 

(COO 

Amonnt  of  the  subvention. 

13 

SUtes. 

Per  year. 

Per  league. 

By  other  crit«ria. 

2 
> 

< 

1 
1 

10 

2 
7 
2 
4 
4 
2 

Tears. 
10 
10 

1 

15  to  24 

8  to  10 

15 

10  to  15 
10 
12 

Francs. 
*5, 000,  000 
375,000 
15,  430, 145 

32,414,457 
5,  000,  000 
1,000,000 
1,  762,  .500 
332,600 
8. 639,  576 

Francs. 
2. 86  to  10 

MUes. 
8  to  12 

Hanaary 

England 

For  150  voyages  

8  to  12 

According  to  the  importance 
of  the  postal  service. 

9  to  12 

25. 90  to  45.  70 

9  to  12 

Spain 

According  to  the  postal  service. 
Guaranty  of  au  average  return. 

11  tol2i 
10  to  11 

Holland 

5  to  9. 75 

9  to  11 

Germany  .. .. 
Italy 

According  to  postal  service 

9  to  10 

1 12  to  32 

8  to  10 

*Oth 

er  advanti 

igea. 

t  According  to  the  line. 

Duncan  J.  Grain, 

Consul. 

United  States  Consulate, 

Milan,  December  5,  1882. 


I>A.RT   III 


TOPICS  FOR  DISCUSSION. 


283 


I. 

TOPICS  TO  BE  DISCUSSED  AT  THE  CONGRESS. 


The  first  of  the  several  topics  embraced  in  the  law  authorizing  the 
approaching  Congress,  "  Measures  that  shall  tend  to  preserve  the  peace 
and  promote  the  prosperity  of  the  several  American  states,"  deserves 
and  will  receive  abler  treatment  than  can  be  given  it  by  me. 

THE  PEOPOSED   CUSTOMS  UNION. 

The  second  topic,  "  Measures  toward  the  formation  of  an  American 
customs  union,  under  which  the  trade  of  the  American  nations  with 
each  other  shall,  so  far  as  possible  and  profitable,  be  promoted,"  is  the 
most  difficult  and  perplexing  of  any  with  which  the  Congress  will  have 
to  deal.  While  it  would  doubtless  be  a  great  advantage  to  tlie  United 
States  to  have  free  trade  in  American  waters,  such  a  thing  is  impossible 
because  all  of  the  nations  of  Central  and  South  America  depend  en- 
tirely upon  their  customs  revenue  for  support.  Every  article  ibey 
import  is  taxed,  not  under  the  protective  theory,  but  "for  revenue 
only,"  as  the  governments  are  compelled  to  obtain  the  necessary  funds 
to  sustain  themselves  by  imposing  heavy  duties  upon  the  necessaries  as 
well  as  the  luxuries  of  life. 

On  the  other  hand,  the  United  States,  rich  and  powerful,  taxes  noth- 
ing it  imports  from  those  countries  in  any  quantity  except  sugar  and 
wools.  At  the  same  time  many  of  those  countries  have  the  "favored 
nation "  clause  in  their  treaties  with  European  governments  which 
would  prohibit  them  from  exercising  any  discrimination  in  favor  of  the 
United  States  upon  articles  of  general  trade. 

RECIPROCITY  TREATIES. 

But  it  still  is  possible  for  the  United  States  to  negotiate  reciprocity 
treaties  with  the  sugar-growing  nations  of  South  America,  under  whicli 
it  may  remove  or  reduce  the  duties  on  sugar  in  exchange  for  a  corre- 
sponding removal  or  reduction  of  the  duties  on  breadstufis,  provisions, 
refined  petroleum,  and  himbei-,  which  are  our  peculiar  i)roducts,  and 
are  not  exported  to  those,  countries  by  any  other  nation.  In  fact,  these 
four  articles  constitute  the  great  bulk  of  our  exports  to  our  Central  and 

285 


286         TRADE  AND  TRANSPORTATION  BETWEEN 

South  American  customers.  They  buy  here  only  what  they  cau  not  buy 
elsewhere,  simply  because  the  absence  of  transportation  facilities  pre- 
vents a  {:^eneral  trade. 

Sugar  is  produced  by  every  nation  from  the  Eio  Grande  to  the  valley 
of  the  Kio  de  la  Plata.  Kone  is  grown  in  Uruguay,  Chili,  or  the  Ar- 
gentine Kepublic,  although  in  the  northern  provinces  of  the  latter  coun- 
try the  cane-growing  is  becoming  quite  an  industry.  The  South  Ameri- 
can Commission  found  every  one  of  these  nations  willing  to  reduce  or 
remove  the  duty  on  the  four  peculiar  products  of  the  United  States 
above  named,  provided  the  United  States  will  remove  or  reduce  to  a 
corresponding  degree  the  duty  on  sugar,  and  we  can  much  better  afford 
to  pay  two  or  three  millions  a  year  in  bounties  to  our  own  producers 
than  fifty  millions  in  customs  taxes.  The  Republics  can  not  compete 
in  the  production  of  sugar  with  the  planters  of  the  West  Indies  or  the 
European  colonies,  and  upon  the  failure  of  the  Spanish  reciprocity 
treaty  in  1884  were  very  anxious  to  have  similar  advantages  offered 
them.  There  will  be  no  difficulty  in  arranging  for  an  exchange  of  con- 
cessions that  will  materially  extend  the  sale  of  our  breadstuff's,  petro- 
leum, i^rovisions,  and  lumber  in  the  countries  where  they  axe  now  taxed 
so  high  that  thej'  can  not  enter  into  the  consumption  of  the  common 
people  to  any  extent. 

THE  QUESTION  OF  WOOL. 

We  obtain  all  our  carpet  wool  from  foreign  nations,  i^Tone  is  pro- 
duced in  the  United  States,  and  the  greater  part  of  our  supply  comes 
from  Chili,  Uruguay,  and  the  Argentine  Republic.  These  countries,  in 
exchange  for  the  removal  or  reduction  of  the  duty  on  carpet  wool,  would 
be  very  glad  to  make  concessions  in  favor  of  our  breadstuff's,  provis- 
ions, petroleum,  and  lumber ;  but  the  difficulty  of  carrying  out  such 
an  engagement  would  lie  in  our  Congress.  While  both  political  parties 
are  pledged  to  a  reduction  or  removal  of  the  duty  on  sugar,  the  wool- 
growers  of  the  United  States  are  violently  opposed  to  any  change  that 
will  offset  the  wool  schedule  of  our  tariff.  While  they  realize  and  ad- 
mit that  carpet  wools  are  not  grown  to  any  extent  in  the  United  States, 
and  our  sheep  farmers  find  them  unprofitable,  they  argue  that  the  free 
admission  of  carpet  wools  would  injure  the  market  for  the  finer  grades, 
because  the  manufacturers  would  very  soon  find  means  of  using  them 
instead  in  woolens,  worsteds,  and  other  clothing.  The  success  of  the 
<5ongres8  in  this  regard  will  depend  entirely  upon  legislation. 

TRADE  NOT  AFFECTED  BY  THE  TARIFF. 

It  is  a  mistaken  idea,  as  has  already  been  said,  that  our  trade  with 
Central  and  South  America  is  seriously  affected  by  our  tariff.  While 
it  is  true  that  railroad  iron  and  some  other  articles  of  merchandise  c»n 
not  l)e  produced  as  cheaply  in  the  United  States  as  in  Europe,  the  re- 
moval of  our  duties  upon  them  would  in  no  measure  affect  the  South 


THE    UNITED    STATES    AND    LATIN    AMERICA.  287 

Americau  trade.  Our  manufacturers  could  not  produce  theuj  any 
cheaper  than  they  can  at  present.  The  cost  of  production  would  not  be 
affected  at  all,  and  therefore  we  cau  not  expect  to  command  the  trade  ot 
the  American  hemisphere  in  these  articles  as  long  as  the  wages  paid  to 
American  mechanics  are  so  much  greater  than  those  received  by  the 
working-men  of  Europe ;  but  there  are  a  thousand  and  one  articles  pro- 
duced in  the  United  States  which  are  not  affected  by  the  tariff  at  all, 
and  they  can  be  produced  and  sold  quite  as  cheaply  here  as  anywhere 
else  in  the  world,  and  of  a  superior  quality,  as  every  merchant  engaged 
in  the  South  American  trade  will  testify. 

Mr.  John  M.  Carson,  recently  clerk  of  the  Committee  on  Ways  and 
Means  of  the  House  of  Representatives,  has,  at  my  request,  prepared  a 
report  upon  the  sugar  and  wool  trade,  which  is  submitted  herewith,  and 
will  be  found  to  contain  many  valuable  facts  and  suggestions. 

THE   QUESTION   OF  TRANSPORTATION. 

The  third  topic,  and  that  which  is  of  the  greatest  interest  to  those 
who  are  endeavoring  to  build  up  a  trade  with  Latin  America,  is  discussed 
at  length  in  the  previous  chapter. 

The  fourth  topic  has  been  assigned  to  others,  but  1  submit  herewith 
a  report  from  the  assistant  secretary  of  the  New  York  Board  of  Trade 
and  Transportation,  which,  will  be  found  to  contain  much  practical 
information  concerning  the  embarrassments  met  with  in  the  Latin  Amer- 
ican custom-houses  by  exporters  of  the  United  States. 

UNIFORM  WEIGHTS  AND  MEASURES. 

The  fifth  topic  refers  to  the  adoption  of  a  uniform  system  of  weights 
and  measures.  This  can  not  be  done  unless  the  United  States  shall 
agree  to  substitute  the  metric  system  for  that  at  present  in  use,  as  it 
prevails  everywhere  else  on  this  hemisphere.  In  a  report  recently  pub- 
lished by  the  French  Government  it  is  shown  that  the  metric  system  is 
how  obligatory  in  countries  having  an  aggregate  of  302,000,000  peo- 
ple, an  increase  of  53,000,000  over  1877.  Countries  where  the  metric 
system  is  authorized  by  law  or  is  optional  are  England,  the  British  col- 
onies, the  United  States,  Russia,  Turkey,  China,  Japan,  and  the  sev- 
eral nations  of  Central  and  South  America,  representing  a  total  of 
794,000,000  people. 

THE  PROTECTION  OF  PATENTS  AND  TRADE-MARKS. 

That  some  means  are  necessary  for  the  protection  of  American  manu- 
facturers from  the  forgery  of  their  trade-marks  and  the  infringement  of 
their  patents  by  European  rivals  will  be  acknowledged  by  every  one 
who  is  engaged  in  trade  with  Central  and  South  America,  where  the 
markets  are  flooded  with  bogus  goods.  But  I  have  had  great  dif- 
ficulty in  securing  information  from  the  persons  who  are  most  interested 
in  this  subject.    In  my  investigations  I  have  discovered  not  only  indif- 


28<S  'J'RADK    AND    TRANSPORTATION    BETWEEN 

lereuce,  but  iguorance  as  to  the  objects  of  this  congress,  and  several 
gentlemen  who  have  had  experience  in  the  detection  and  prosecution 
of  trade-mark  forgeries  and  the  infringement  of  patents  have  neglected 
to  furnish  the  reports  they  promised  to  prepare. 

I  insert,  however,  as  an  appendix  to  this  chapter,  an  article  on  this 
subject  which  recently  appeared  in  the  New  York  Indeiyendent.  and  it 
will  be  read  with  interest. 

The  superiority  of  American  goods  is  so  great  that  the  Manchester 
mills  send  few  goods  to  South  America  that  do  not  bear  forged  Amer- 
ican trademarks.  These  goods  are  inferior  to  those  produced  in  the 
United  States  and  are  sold  for  about  5  cents  a  yard,  while  the  cheapest 
genuine  American  drillings  cost  about  7  cents.  The  bogus  stuff  is  made 
of  pipe-clay  and  starch  upon  a  very  thin  fabric  of  cotton,  but  the  ma- 
terial is  just  as  well  adapted  to  the  use  of  the  common  people  as  the 
better  quality,  which  comes  from  the  United  States  and  is  used  only  by 
the  wealthier  classes. 

CHEAP  GOODS  DEMANDED  BY  THE  PEOPLE. 

While  cotton  goods  constitute  almost  the  entire  wearing  apparel  of 
the  laboring  people,  men  as  well  as  women,  and  as  they  seldom  wash 
their  garments,  the  pipe-clay  stuff  is  just  as  good  and  wears  perhaps  a 
little  better  than  the  genuine  article.  The  merchants  complain  that 
they  are  compelled  to  order  goods  from  Manchester  bearing  this  fraud- 
ulent trade-mark,  because  the  people  demand  that  quality,  and  also 
insist  upon  having  American  goods.  If  our  mills  would  enter  into  com- 
l)etition  with  those  of  England  in  the  production  of  this  material  they 
would  find  it  a  profitable  trade. 

These  cottons  are  required  by  the  prevailing  laws  of  trade  and  the 
tastes  of  the  people  to  be  of  a  certain  length  and  a  certain  width,  so  as 
to  cut  with  economy,  as  the  native  requires  just  so  many  yards  to  the 
piece;  the  price  is  also  fixed  by  the  unwritten  law  of  custom,  and  if  a 
merchant  sells  a  wider  piece  of  goods  than  they  are  accustomed  to  buy 
he  can  get  only  the  same  price  that  the  narrow  piece  will  bring.  The 
merchants  complain  that  they  do  not  get  their  cotton  from  the  United 
States  as  ordered;  very  often  receiving  something  similar,  but  essen- 
tially different.  The  slightest  variation  from  the  sample  makes  the 
goods  unmarketable,  and  subjects  the  importer  to  a  loss. 

THE  EXPERIENCE   OF   A  NEW   YORK  FIRM. 

A  member  of  the  firm  of  Smith,  Hogg  »&  Gardner,  of  New  York, 
with  whom  I  recently  conversed,  said : 

"  We  have  experienced  considerable  trouble  from  the  manufacturers 
in  Manchester  who  hav'e  infringed  our  trade-marks,  and  once  or  twice 
we  have  succeeded  in  obtaining  judgments  against  them;  have  recov- 
ered damages  and  costs,  and  have  compelled  them  also  to  publish  the 
fact  that  they  had  infringed  upon  our  rights." 


THK  UNITED  STATES  AND  LATIN  AMERir-A.        289 

"In  what  country  was  thist" 

"  The  counterfeit  goods  were  sokl  mostly  on  the  west  coast  of  South 
America,  I  think." 

*'In  what  courts  were  the  suits  brought?" 

"  I  think  in  Enghmd." 

"  How  couhl  you  bring  the  suits  in  the  English  courts?" 

"The  manufacturer  of  the  goods  stamped  them  in  Manchester,  sold 
them  in  Manchester,  and  delivered  them  there." 

"Some  of  the  South  American  countries  protect  you,  and  others  do 
not  protect  yon  at  all.  We  want  to  find  out  wbat  countries  protect 
you  and  what  countries  don't." 

"Protection  down  in  Brazil ;  what  does  it  amount  to?  They  don't 
make  anything  there  to  compete  with  us.  Here  is  a  case  I  am  working 
up  now.  There  is  a  class  of  goods  made  iu  Massachusetts  known 
throughout  Brazil  as  '  Gilt  B;' and  orders  come  from  Brazil  for 'Gilt 
B;'  so  the  English  manufacturers  attach  imitation  of  our  trade-mark." 

"  Have  you  ever  tried  to  collect  damages?" 

"Yes;  we  have,  and  have  succeeded.  " 

"Where  would  you  collect  them?" 

"In  Manchester.  The  manufacturers  of  the  counterfeit  goods  are 
selling  their  goods  all  the  time,  although  we  have  great  ditUculty  in 
definitely  locating  the  forgeries.  Every  time  we  do  find  an  infringe- 
ment we  have  no  trouble  in  collecting  damages. " 

THE  FORM   OF   THE  FORGERIES. 

The  original  goods,  the  infringement  of  the  trade-mark  upon  that  is 
here  complained  of,  bear  a  red  enamel  ticket  with  a  large  gilt  B  stamped 
in  the  middle  of  it,  and  read  "Massachusetts  Drillings,  warranted  In- 
digo Blue.  Lowell  Bleachery  and  Dye  Works,"  with  the  number  of 
yards  indicated  in  the  corner.  The  fraudulent  goods  are  marked  iu 
exactly  the  same  way.  The  same  kind  of  type  is  used,  with  the  same 
kind  of  paper,  and  the  trade-mark  is  imitated  so  that  no  one  but  the 
manufacturers  of  the  goods  can  identify  the  difference.  Other  fraudu- 
lent goods  bear  similiar  tickets,  reading  "Massachusetts  Drillings," 
"Warranted  Indigo  Blue,"  with  a  large  gilt  "B"  also  printed  upon 
them.     Others  bear  the  name  of  the  maker  in  Massachusetts. 

About  a  year  ago  the  house  of  Smith,  Hogg  &  Gardner  sued  JafiFey 
^  Co.,  of  Manchester,  England,  for  infringement  of  their  trade-mark  of 
fb  flying-horse  upon  shirtings.  The  fraudulent  goods  bore  an  exact 
counterfeit  of  the  picture  of  a  flying-horse  or  stag,  which  had  been 
adopted  by  the  Massachusetts  mills  of  Lowell  for  their  sheetings  and 
shirtings,  and  below  the  figure  are  the  words  "Massachusetts  Shirt- 
ings," and  the  letter  "C,"  or  other  letters  indicating  the  different  grades 
pr  (|ua]ities  of  goods.  These  were  imitated,  and  large  quantities  sold 
j^U  .over  South  America.  The  ^uit  wftS  brought  in  the  English  courts, 
jand  jwfigraent  was  obtaiuedj 


290  TRADE    AND    TRANSPORTATION    BETWEEN 

TRADE-MARK  FORGERIES   IN  BRAZIL. 

Tbe  Tlio  News  of  tlie  14th  of  Jamiary  last,  iu  speaking  of  the  infringe- 
meut  of  the  Uiw  of  1887  for  the  protection  of  trademarks,  says  : 

Notliiug  can  be  more  clearly  just  than  that  the  merchant  or  manufacturer  has  an 
exclusive  right  to  the  use  of  a  uauie  aud  the  reputation  established  by  his  own  eflorts. 
A  well-known  illustration  of  this  is  to  be  found  in  the  eliorts  made  by  the  Singer 
Sewing  Machine  Company  to  protect  their  trade  name.  Certain  unscrupulous  man- 
ufacturers and  merchants  have  not  been  content  with  the  free  use  of  the  trade  name 
which  the  Singer  company  is  using.  A  number  of  these  spurious  Singer  machines  is 
very  large,  and  their  sale  has  thus  far  been  unprotected  by  the  failure  of  the  legisla- 
ture to  make  a  clear  distinction  in  favor  of  the  manufacturer.  The  new  Brazilian 
law,  however,  makes  this  distinction,  and  prospects  are  that  full  protection  will 
hereafter  be  given  under  its  provisions. 

THE  PROPOSED   INTERNATIONAL   COIN. 

The  sixth  topic,  which  related  to  the  adoption  of  a  common  silver 
coin,  is  discnssed  briefly  by  Mr.  Carson,  whose  report  is  submitted 
herewith. 

THE   LACK  OF   BANKING   FACILITIES. 

Involved  in  this  question  is  the  very  important  one  of  banking  facil- 
ities and  credits,  the  improvement  of  which,  however,  is  impossible 
without  direct  and  regular  steam-ship  communication.  It  would  result 
iu  the  saving  of  from  one  to  one  and  a  half  million  dollars  annually, 
which  is  now  paid  out  in  the  form  of  exchange  to  the  bankers  of  Eng- 
land.  We  pay  a  toll  of  one-half  or  three-quarters  of  a  cent  to  the 
bankers  of  Loudon  upon  almost  every  dollar's  worth  of  trade  we  transact 
with  Latin  America,  and  every  transaction  is  computed  in  pounds,  shil- 
lings, and  pence,  instead  of  in  our  own  money. 

It  is  just  this  way  [said  the  lion.  William  R.  Grace,  of  New  York,  recently]:  Sup- 
posing I  want  to  buy  a  cargo  of  goods  in  any  South  American  country.  I  say  nothing 
about  the  West  Indies,  for  I  do  not  trade  there,  and  I  know  nothing  about  what  the 
arrangements  are  there,  but  of  South  America  I  know  considerable.  Of  course,  if  I 
buy  my  cargo,  I  must  pay  for  it.  Now,  there  is  ])ractically  only  one  way  in  which 
I  can  do  it.  I  must  send  a  draft  on  London,  or  rather  I  send  to  my  South  American 
correspondent  a  written  authority  to  draw  on  a  London  bank.  Of  course  I  have  to 
keep  an  account  in  London  to  do  this,  and  the  London  banker  charges  me  a  commia-i 
Bion  for  doing  this  kind  of  business,  so  that  it  is  a  constant  expense  to  me. 

The  obviously  simple  way  for  me  to  pay  would  bo  to  authorize  the  South  Americaq 
merchant  to  draw  on  me  directly,  but  I  can  not  do  this  for  a  simple  reason.  Europe 
has  the  bulk  of  the  trade  of  the  world,  and  especial  ly  the  bulk  of  the  South  American 
trade,  and  Loudon  is  the  monetary  center  of  Europe.  The  South  American  does  uofc 
buy  in  the  United  States  a  sufficient  quantity  of  goods  to  make  a  draft  on  New  York 
valuable  to  him.  He  does  not  want  his  money  placed  here,  for  it  will  cost  him  some 
trouble  and  some  expense  to  transfer  it  to  London,  where  he  has  to  meet  his  pay- 
ments.   Therefore  I  have  to  do  it  for  him. 

THE  TESTIMONY   OF  AN  EXPERT. 

Mr.  Charles  R.  Flint,  who  is  a  delegate  to  the  International  Con- 
gress, said : 

There  are  Spanish-American  products  Imported  into  the  U^^ited  States  amounting 
in  the  aggregate  to  |18l,000^0()0,      ProductB  of  tbe  Unite^  ^^a*®*  expoi^ted  to  thft 


THE    UNITED    STATES    AND    LATIN    AMERICA.  291 

South  American  nations  aggregate  $69,000,000.  Naturally  it  would  be  supposed  that 
the  value  of  all  the  exports  from  the  United  States  would  be  to  their  extent  an  offset 
in  the  liquidation  of  the  traffic.  As  a  matter  of  fact,  only  rather  less  than  more  than 
$45,000,000  is  liquidated  in  this  manner  or  through  Nortli  American  flnancial  institu- 
tions. The  remainder,  |;i:5(),000,000,  is  j)aid  by  drafts  at  ninety  days  on  North  Amer- 
ican merchants  upon  Loudon  banks  or  bankers,  which,  after  acceptance,  become 
immediately  available  for  the  purchase  of  European  products.  The  North  American 
merchants'  further  responsibility  consists  merely  in  having  the  cash  in  London  before 
the  date  of  maturity.  English  bankers  charge  three-quarters  per  cent,  for  this  ac- 
commodation. Thus,  on  the  $1:36,000,000  liquidated  in  this  manner  the  English  ban- 
ker's prolit  is  a  round  million  dollars. 

THE   OPINION   OF   AN   ENGLISHMAN. 

Capt.  Archibald  P.  King,  au  English  banker,  now  visiting  this  coun- 
try, in  speaking  of  the  coming  conference,  said  to  a  reporter  of  Export 
and  Finance : 

I  am  glad  that  American  merchants  are  waking  up  and  beginning  to  realize  the 
short-sighted  policy  of  their  Government  toward  foreign  commerce  and  banking. 
The  banker's  commission  on  the  trade  between  the  two  Americas  is  the  smallest  ele, 
ment  in  the  premises,  amounting  to  less  than  £400,000.  The  use  of  the  mouey- 
which  aggregates  a  hundred  times  as  much  as  the  commission,  is  far  more  impor- 
tant and  profitable. 

Weightier  still  is  the  influence  of  banking  facilities  upon  commerce  itself.  In  the 
fierce  competition  of  modern  trade  the  fraction  of  a  cent  will  make  one  manufacture 
succeed  and  its  rival  in  some  country  fail.  In  cotton  textiles  there  is  a  struggle  be- 
tween English  and  American  looms  for  the  markets  of  the  world.  In  many  South 
American  cities  the  former  prevail  on  account  of  the  excellent  banking  facilities  be- 
tween them  and  London,  and  the  total  absence  of  such  facilities  between  them  and 
New  York.  A  similar  state  of  affairs  obtains  in  other  industries.  In  axes,  hatchets, 
spades,  and  shovels  there  ia  a  heavy  competition  between  America,  England,  Belgium, 
and  Germany.  In  petroleum  and  its  products  there  is  beginning  to  be  a  rivalry  be- 
tween the  States  and  Russia.  In  clocks,  machine-made  watches,  small  hardware, 
and  what  you  call  "  notions"  there  is  the  same  fight.  An  increase  in  banking  facili- 
ties between  New  York  and  its  foreign  customers  would  benefit  every  manufacturer, 
and  by  enlarging  the  margin  of  profit  would  enable  the  latter  to  extend  his  trade  and 
find  markets  which  are  now  utterly  unavailable. 

THE  VIEWS   OP  A  BANKER. 

Mr.  J.  Edward  Simmons,  president  of  the  Fourth  National  Bank  of 
New  York,  said  recently : 

It  is  a  standing  disgrace  to  American  statesmen  that  South  and  Central  America 
should  do  their  banking  and  draw  their  supplies  from  European  banking  and  com- 
mercial centers.  There  is  very  little  that  they  need  from  outside  their  own  bound- 
aries that  this  nation  ia  unable  to  furnish  them  as  cheaply  and  as  well  made  as  they 
can  get  elsewhere.  As  far  as  I  have  given  the  subject  attention,  our  failure  to  ab- 
sorb that  trade  is  not  due  to  lack  of  enterprise  in  our  merchants  and  manufacturers, 
but  simply  to  our  inability  to  deliver  goods  in  their  ports  with  as  small  freighting 
charges  as  are  imposed  by  the  ships  of  other  nations.  It  is  the  old  story  of  throwing 
a  stone  in  a  pool.  In  this  case  the  point  where  the  stone  plunges  and  the  resulting 
waves  are  largest  is  the  ship,  but  every  trade  and  industry  feels  the  effect.  It  is 
about  time  that  the  general  commercial  interests  of  the  country  were  freed  from  the 
eUackles  which  were  imposed  to  encourage  the  industry  of  ship-bviilding.    Jf  tUe  CQm» 


292         TRADE  AND  TRANSPORTATION  BETWEEN 

ing  Congress  of  Nations  accomplishes  any  good  results,  as  I  believe  it  will,  in  luy 
judgment  it  will  be  in  the  direction  of  preseutiug  this  question  in  such  .a  shape  that 
there  will  be  no  more  toll-taking  by  a  few  ship-builders.  Moreover,  the  matter  of 
subsidy  concessions  will  be  less  abhorrent  to  American  statesmen. 

OPINION  OF  ANOTHER  BANK  PRESIDENT. 

Said  Mr.  George  S.  Coe,  president  of  tbe  American  Exchange  National 
Bank : 

There  is  obviously  some  maladjastment  of  relations  which  enables  English  bankers 
to  take  $1,000,000  toll  out  of  the  exchange  of  products  between  Spanish  Americana 
and  the  United  States.  It  is  to  be  hoped  that  the  coming  Congress  of  the  Nations  of 
the  three  lister  continents  will  be  able  to  ascertain  the  friction  point  and  suggest  a 
remedy  As  far  as  my  impression  goes  the  trouble  lies  in  our  navigation  laws,  which 
virtually  renounce  all  but  coastwise  freightage  for  foreign  vessels.  I  know  that  sev- 
eral very  important  public  exigencies  contributed  to  making  those  laws  tolerable  at 
the  time  they  were  enacted.  Still,  the  nation  has  grown  so  marvelously  since  that 
Avhat  was  hardly  tolerable  then  is  now  more  than  intolerable.  Commerce  extends  its 
benelits  to  so  many  industrial  interests  that  I  am  persuaded  that  the  true  national 
interest  lies  in  encouraging  it  by  the  removal  of  restrictions,  and  even  by  subsidies, 
which  other  nations  employ  to  great  advantage. 


niE    UNITED    STATES    AND    LATIN    AMERICA.  293 

11. 

SUGAR  TRADE  OF  THE   UNITED   STATES. 


By  John  M.  Carson,  late  Cleric  Committee  on  Ways  and  Means,  House  of  Representatives. 


Sugar  has  formed  from  the  earliest  period  one  of  the  most  important 
single  commodities  in-  our  import  trade.  For  the  past  four  years  the 
average  quantity  imported  annually  was  2,880,073,485  pounds,  and  the 
average  value  $72,440,910.  During  the  same  period  the  annual  average 
value  of  all  dutiable  merchandise  imported  was  $429,728,743,  so  that 
the  single  item  of  sugar  was  equal  to  one-sixth  of  all  the  dutiable  mer- 
chandise imported.  The  importation  from  the  Sandwich  Islands  is 
not  included  in  the  figures  above  given.  The  importation  of  sugar  is 
entirely  from  Spanish-American  countries,  with  the  exception  of  that 
received  from  Hawaii.  Adding  the  receipts  of  this  free  sugar  from  the 
Sandwich  Islands  makes  the  average  quantity  annually  imported  for 
the  four  years  ending  with  June,  1888,  over  300,000,000  pounds,  and  the 
average  annual  value  nearly  $82,000,000. 

The  importance  of  sugar  to  the  revenues  is  shown  by  the  fact  that 
during  the  four  years  stated  the  annual  average  amount  of  duty  col- 
lected on  imported  sugar  was  $52,076,491 ;  the  average  of  the  total 
duty  collected  during  that  period  from  all  the  merchandise  imported 
being  $199,450,054,  thus  showing  that  the  duty  derived  from  sugar  was 
equal  to  more  than  25  per  cent,  of  the  entire  revenues  of  the  Govern- 
ment derived  from  imported  merchandise. 

OUR  niPORTS   OF   SUGAR. 

Sugar  is  imported  mainly  from  Mexico,  the  West  Indies,  and  South 
America.  Out  of  the  total  import  during  the  fiscal  year  1888,  which 
amounted  to  2,700,248,157  pounds,  valued  at  $74,243,554,  there  was  re- 
ceived from  Spanish-American  countries  2,103,678,668  pounds,  valued 
at  $56,139,239 ;  so  that  it  may  be  said  that  the  importation  of  sugar 
into  the  United  States  is  confined  mainly  to  the  Spanish-American 
countries. 

The  importation  of  molasses  from  the  West  Indies  and  South  America 
forms  a  separate  item.  This  molasses  comes  mainly  from  Cuba.  The 
aggregate  importation  will  average  about  36,000,000  gallons  per  annum, 
with  an  average  value  of  about  $6,000,000. 


294 


TRADE    AND    TRANSPORTATION    BETWEEN 


Last  year  there  was  received  from  the  Hawaiian  Islands  228,540,513 
pounds  of  su^ar,  valued  at  $10,200,048,  and  from  Germany  there  was 
received  61,919,752  pounds  of  beet  sugar,  valued  at  $1,594,760. 

While  sugar  is  received  from  fourteen  of  the  Spanish-American  coun- 
tries, more  than  one-half  of  the  entire  importation  comes  from  the  island 
of  Cuba. 

SUGAR  IMPORTED  FROM  SPANISH  AMERICA. 

A  table  is  appended  which  shows  the  quantities  and  value  of  sugar 
imported  during  the  year  ending  June,  1888,  from  the  various  countries : 

Sugar  imported  for  the  year  ending  June,  1888,  f7-ovi  the  countries  named. 


Conntries. 


Quantity. 


Value. 


Brazil <... 

Guatemala 

San  Salvador 

Danish  West  Indies  . 
Trench  West  Indies  . 
Britisli  West  ludiea  . 

British  Guiana 

Britisli  Uouduraa 

Hayti 

Mexico 

San  Domingo 

Cuba 

Porto  Rico 

Colombia 

Venezuela 


Total 


Pounds. 
305,  86(),  337 

4,  620,  255 

3,  070,  850 
11, 103,  826 

5,  70G,  337 
302,  596,  709 

94,914,020 

928,  873 

.534,  220 

614,  574 

44,  793,  992 

,  209, 170,  332 

115,653,809 

4,  094,  845 

3,719 


2, 103,  678,  668 


Dollars. 

6,  752,  555 

17C,  905 

85,  607 

295,312 

109,  859 

6,  936,  995 

2,  813,  992 

23,  761 

15, 104 

14,543 

1, 248,  544 

34,545,116 

2,  997,  713 

123,  047 

186 


56, 139, 23« 


Total  imported  from,  all  countries. 


Cane  sugar -^ 

Pounds. 
2,  409,  757,  892 
61, 949,  752 

Dollars. 
62,  388,  740 
1,  594, 766 

From  Hawaiian  Islands 

2,471,707,644 
228,  540,  513 

63,  983,  506 
10,  260,  048 

Total 

2,  700, 248,  157 

74,  243,  554 

Sugars  above  No.  13  are  not  included  in  the  above  tables, 
amounted  to  30,125  pounds,  valued  at  $1,642. 


These 


SUGAR   TRADE   WITH  HAWAII. 


In  connection  with  the  importation  of  sugar  from  Spanish-American 
countries,  which,  as  has  been  shown,  pay  over  25  per  cent,  of  the  customs 
revenue  collected  by  the  Government,  the  growth  of  the  inii)ortation 
of  sugar  free  of  duty  from  the  Sandwich  Ishinds  will  be  of  interest. 
The  importation  from  these  islands  shows  a  steady  increase.  Thus  in 
1879  the  total  importation  was  41,090,674  pounds,  valued  at  $2,811,675, 
while  in  1888  this  had  grown  to  125,158,677  pounds,  valued  at  $7,108,877; 
an  increase  of  200  per  cent.  During  the  last  four  years  the  average 
annual  importation  of  sugar  from  the  Hawaiian  Islands  exceeded 
200,000,000  pounds  and  the  value  $9,220,445. 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


296 


IMPORTS  FROM  THE  HAWAIIAN  ISLANDS. 

The  growth  of  tbis  trade  is  shown  in  the  annexed  table,  which  ex- 
hibits the  quantities  and  values  of  sugar  imported  from  Hawaii  for  the 
eleven  years  ending  June  30,  1889  : 


Years. 

Quantity. 

Value. 

Tears. 

Quantity. 

Value. 

1879 

Pounds. 
41,  696,  674 
61,  556,  708 
76,  907, 247 
106,181,858 
111,  132,  670 
125, 158,  677 

Dollars. 
2,811,096 
4,137,058 
4,  928, 424 

6,  923, 608 

7,  301,  044 
7, 108,  777 

1885 

Pounds. 
169,  652,  603 
191,  623, 175 
218,290,835 
228,  540,  513 
243,  324, 683 

Dollars. 
8,198,404 

1880          

1886 

9, 166,  826 

1881 

1887 

9,  255,  351 

1882 

1888 

10,  260,  800 

1883 

1889 

12,078,518 

1884 

The  adniission  free  of  duty  of  sugar  grown  in  Hawaii  was  the  means 
of  destroying  the  sugar  trade  between  San  Francisco  and  the  countries 
of  South  Auierica  bordering  on  the  Pacific  Ocean,  and  in  some  of  those 
countries  caused  large  financial  loss  through  the  abandonment  of  sugar 
plantations.  The  total  commerce  of  Hawaii  with  the  United  States  in 
1888  amounted  to  $14,000,000,  of  which  $11,150,379  was  received  from 
the  Islands  and  $3,025,878  sent  them  in  return.  It  will  be  noticed  that 
sugar  constitutes  nearly  all  the  merchandise  received  from  Hawaii,  and 
may  be  said  to  constitute  the  volume  of  trade  between  the  two  countries. 

EXPORT   OF  REFINED   SUGAR. 

The  value  of  refined  sugar  exported  during  the  year  ending  June, 
1888,  was  $2,184,788,  which  was  the  lowest  since  1882  and  is  only  equal 
to  one-fifth  of  the  exportation  for  the  preceding  year.  For  the  five 
years  ending  with  June,  1888,  there  was  exported  about  $40,000,000 
worth  of  refined  sugar,  of  which  a  large  quantity  went  to  the  Spanish- 
American  countries.  One-third  of  the  exportation  for  the  last  year 
went  to  those  countries.  In  addition  to  the  exports  of  sugar,  the  value 
of  molasses  annually  exported  is  about  a  million  dollars. 

The  total  export  of  domestic  sugar  to  Spanish-American  countries 
for  the  fiscal  year  1888  was  about  12,000,000  pounds,  valued  at  about 
$800,000. 

Chili,  Mexico,  the  Central  American  States,  British  West  Indies, 
Hayti,  British  Columbia,  and  the  United  States  of  Colombia  are  the 
largest  purchasers  of  our  exported  sugar,  the  amount  purchased  by 
the  several  countries  named  varying  from  $40,000,  in  tlie  case  of  Cen- 
tral America,  to  $227,000,  in  the  United  States  of  Colombia,  which  is 
the  largest  purchaser. 

The  total  exports  of  domestic  refined  sugar  to  all  countries  for  the 
year  1888  was  34,505,311  pounds,  valued  at  $2,184,788.  The  proportions 
that  went  to  the  Spanish-American  countries  will  be  seen  by  the  an- 
nexed table. 


29G  TRADK    AM)    TRANSPORTATION    RETWHRN 

Refined  sugar  exported  lo  Spanish  America  for  the  year  ending  Jtine,  1888. 


To- 


Argentine  Republic 

Central  America: 

Codta  Rica 

Guatt'uiala 

Houdnras 

Nicuriv^iia 

San  Salvador 

Chili 

Danish  West  ludiea 

Ecuador 

Freuch  West  Indies 

French  Guiana 

British  West  Indies 

British  Uuiana 

British  Honduras 

Hayti 

Mexico 

Dutch  West  Indies - 

Dutch  Guiana 

Peru 

San  Doniins;© 

Cuba 

British  Colombia 

Porto  KioD 

United  States  of  Colombia  . 

TJnimiay 

Venezuela 


Total 

Brown  domestic . 
Brown  foreign... 


Total , 


Quantity. 


Poxindg. 

584 

JG4,  GIO 

11,  ;!10 

17l,4:{4 

219,477 

:i70 

l.O.'iti.Sn 

lOi),  711 

•lf>,  !t'.7 

:i,  0(10 

11.'9,  40'J 

2,o:;8, 1^13 
10,  :ii9 

103,313 

1,252,743 

h42,  298 

121,303 

5,  700 

733 

2C.-»,  209 

1,  6.i8 

1,017,183 

21,  385 

3,178,283 

15,  034 

521 


Value. 


Dollars. 
38 

11,843 

774 

11,919 

14,  892 

23 

08,944 

7,716 

1,811 

250 

8,  483 

139,480 

090 

0,  076 

83,  519 

58,  123 

8,860 

375 

45 

18,  603 

100 

94.  951 

1,539 

227,  324 

1,175 

U 


11,  363,  942 
140,  310 
439,  740 


11,943,028 


708,187 

7,409 

10,313 


785,  969 


Domestic  sugar,  molasses,  and  confectionery  exported  to  all  countries  for  the  year  1888. 


Description. 


Refined  sngar . 
Brown  sugar . . 
Confectionery  . 


Total 

Molasses,  gallons. 


Quantity. 


Pounds. 

34,  ,505,  311 

140,  846 


34,  616,  357 
7,  226, 128 


Value. 


Dollars. 
2, 184,  788 
7,  502 
155,  521 


2,347.811 
1,  031, 185 


Of  the  $155,521  worth  of  confectionery  exported,  the  Sonth  Ameri- 
can countries  purchased  $50,000,  or  more  than  a  third;  and  of  this  the 
Island  of  Cuba  purchased  about  $17,000,  or  nearly  one-third  of  the  en- 
tire amount  exported  to  Spanish  America.  The  British  West  Indies, 
Mexico,  and  Colombia  each  i)urchased  over  $0,000  worth,  Central 
America  over  $5,000  worth,  and  Venezuela  about  $5,000  worth. 

FLUCTUATIONS  OF  THE  EXPORT  TRADE. 

The  export  of  refined  sugar  from  the  United  States  for  the  ten  years 
ending  June  30, 1SS9,  presents  some  interesting  features  and  will  be  of  in- 
terest to  those  who  produce  the  brown  sugar  as  well  as  to  those  who 
exjiort  the  refined  article,  lieginning  with  1880  the  export  was 
30,000,000  pounds,  which  dropped  to  22,000,000  pounds  in  1881  and  to 
13,701,000  pounds  in  1882.    The  following  year  it  was  doubled,  in- 


THE    UNITED    STATES    A\D    LATIN    AMERICA. 


297 


creasod  to  75,920,734  in  1884,  and  iu  1885  reached  the  highest  point 
ever  known,  the  quantity  being  252,579,077  pounds  and  the  vahie  over 
$1(5,000,000.  This  exceeded  the  entire  quantity  of  sugar  i)roduced  in 
the  United  States  for  that  year.  In  188G  there  was  a  falling  oil'  to 
104,339,907  pounds.  The  following  year  shows  an  increase  to  190,072,- 
154  pounds.  Then  came  a  drop  to  34,505,311  pounds,  and  a  greater 
drop  in  the  year  ending  June,  1889,  to  14,000,000  pounds,  the  lowest 
since  1882.  For  the  ten  years  the  annual  average  was  82,511,399,  and 
the  average  value  $5,519,422.  The  ex])orts  for  the  last  two  years 
combined  did  not  equal  this  average. 

The  annexed  table  shows  the  total  exports  of  refined  sugar  for  the 
ten  years  ending  June  30,  1889: 


Tears. 

Quantity. 

Value. 

Tears. 

Qaantity. 

Value. 

1880   

Pounds. 

30,125.  !46 
22.  227,  8,57 
1^,761,069 
26  81.5,  4t;3 
75.  920,  7:i4 
252,  579,  077 
164, 339,  907 

Dollarg. 
2.  217, 563 
2,  049,  982 
1, 1^35,689 
2.  4.54,  2,0 
5  402,  493 
16,071.767 
10,  972, 729 

18.S7 

Po^inds. 

190,  672, 154 

34,  50.5,  311 

14,  167,  216 

Dollarg. 
11,435,765 

1881         

1888 

2  184,  788 

1882 

1889 

Total  

Auuual  average. 

1,  070,  2:)6 

1883 

1884         ..     ..   ' 

82.5,113,994 
82,511,399 

55  194  222 

1885 

1886        .       ..•  

5,519,422 

REQUIREMENTS  FOR  HOME  CONSUMPTION. 

The  relation  that  the  Louisiana  sugar  sustains  to  that  imported  will 
be  better  understood  and  realized  by  giving  the  figures  for  each.  The 
figures  here  given  are  for  the  year  ending  June  30,  1888.  During  that 
year  the  quantity  of  sugar  imported  was  2,700,248,157  j^ounds.  and 
the  quantity  produced  in  Louisiana  and  other  Southern  States  was 
375,904,197  pounds. 

The  annual  per  capita  consumption  of  sugar  in  the  United  States 
has  averaged  for  the  five  years  ending  with  Juno,  1888,  52  pounds. 
The  production  in  the  United  States  last  year  was  equal  to  a  fraction 
over  0  pounds  per  capita,  and  the  crop  for  1888  was  the  largest  since 
1802,  when  it  reached  about  540,000,000  pounds.  It  will  thus  be  seen 
that  the  native  crop  is  at  the  present  time  equal  to  only  one-ninth  of 
the  actual  requirements  for  home  consumption. 

Reducing  to  tons  the  quantity  of  sugar  consumed  in  the  United  States 
for  the  year  1888,  it  is  found  to  equal  1,409,997  tons  (2240  pounds),  of 
which  tlie  domestic  production  was  189,814  tons,  which  includes  20,000 
tons  of  maple  sugar,  1,040  tons  of  beet,  and  300  tons  of  sorghum. 

The  consumption  of  sugar  in  the  United  States  must  increase  with 
the  increase  of  population.  Whatever  may  be  the  possibilities  of  the 
future,  it  can  not  be  expected  that  the  home  production  will  equal  the 
consumption  for  many  years  to  come.  Indeed  it  may  be  considered 
very  doubtful  whether  the  domestic  crop  of  cane  sugar  will  ever  exceed 
10  pounds  per  capita  of  the  population  of  the  United  States,  which  is 
less  than  one-fifth  of  the  present  consumption.    The  United  States 


298 


TRADE  AXD  TRANSPORTATION  BETWEFN 


therefore,  for  many  years,  and  perhaps  for  all  time,  so  far  as  cane 
sugar  is  concerned,  will  necessarily  depend  upon  the  sugar-growing 
countries  of  Spanish  America  for  this  commodity.  The  successful  de- 
velopment of  sorghum  and  the  sugar-beet  in  this  country  may  change 
the  present  conditions,  but  until  a  change  takes  place  it  is  suggested 
that  the  United  States  should  enter  into  such  treaties  with  Spanish 
America,  or  enact  such  laws  as  will  enable  tlie  people  of  this  country 
to  purchase  a  staple  as  necessary  almost  as  flour  in  the  daily  economies 
of  life,  without  being  required  to  pay  a  duty  to  the  custom  house  nearly 
equal  to  the  value  of  the  sugar.  The  annexed  table  shows  the  con- 
sumption in  1888  of  sugar  in  the  United  States  in  tons  (2,240  pounds 
to  the  ton) ;  also  the  quantities  of  domestic  and  imported  respectively 
wliich  entered  into  consumption : 

Imported tons..   1,280,183 

Donieslic : 

Cane tone..     167,814 

Maple do..       20,000 

Beet  do..         1,640 

Sorghum do . .  360 

189, 814 

Total 1,469,997 

Consumption  per  capita pounds..     53. 1 

Domestic  production  per  capita do..      6. 11 

DUTIES   COLLECTED   ON   SUGAR. 

The  relation  that  the  present  duty  on  sugar  bears  to  its  value  will 
be  more  readily'  understood  by  showing  the  value  of  sugar  imported  for 
the  four  years  ending  with  June,  1888,  and  the  duties  collected  thereon. 
The  present  rateof  duty  went  into  eflect  July  1, 1883,  but  it  is  probable 
that  the  full  force  of  the  law  was  not  felt  until  the  fiscal  year  1885, 
although  it  appears  that  the  duty  collected  for  the  fiscal  year  1884 
exceeded  that  collected  the  preceding  year  by  $3,000,000,  which  is  ex- 
plained, perhaps,  by  the  fact  that  there  was  an  increase  in  the  impor- 
tations over  the  preceding  year  of  more  than  500,000,000  pouiuhs.  For 
the  year  1884  the  importation  was  valued  at  $90,753,410,  upon  which 
there  was  collected  $47,500,750. 

The  annexed  table  shows  the  values  and  duties  collected  for  the  four 
years  ending  June  30,  1888,  upon  sugar  im])ortod  into  the  United 
States : 


Tears. 

Value. 

Dutica. 

18fl.'       .            

$p.R,5ni,49r. 

77,218,  i:j;. 

71,510.  (;ii7 
04,  000.  748 

$50,  Sfi.'i.  91 G 
."iO,  2(;5,  &'18 

IHHI] 

]8a7 

r.6,  50  /,  40G 

1888 

60,  61/,  014 

Total 

284,  278,  985 

206,  :i05,  964 

71,  069,  746 

52,  076, 481 

THE    UNITED    STATES    AND    LATIN    AMERICA.  299 

The  importation  for  the  year  ending  June  30,  1SS9,  was  above  the 
average,  having  reached  2,518,848,901  pounds  in  quantity  and  $70,502,- 
023  in  value. 

THE  ARGENTINE   REPUPLIC   AND  URUGUAY. 

An  examination  of  the  quantities  and  values  of  sugar  exported  to  the 
Argentine  Republic  and  Uruguay  during  the  past  ten  years  shows  a 
steady  decline.  This  is  more  marked  in  the  trade  with  the  Argentine 
Republic.  As  will  be  seen  by  the  table  given  on  a  preceding  page  the 
export  of  sugar  to  that  country  during  the  year  1888  dropped  to  figures 
that  are  not  worthy  of  mention,  except  for  purposes  of  comparison. 
From  1875  to  1881,  both  years  incUisive,  the  export  of  refined  sugar  to 
the  Argentine  Republic  varied  from  1,000,000  to  5,000,000  pounds  an- 
nually. For  the  year  1879  it  rose  to  5,632,623  pounds,  valued  at  $481,- 
000,  which  was  equal  to  23  per  cent,  of  the  total  exports  to  that  country 
from  the  United  States  for  that  year.  For  the  year  1881  the  export 
was  3,326,840  pounds.  It  suddenly  fell  the  following  year  to  261,133 
pounds,  rose  to  758,551  pounds  for  1884,  and  did  not  reach  those  figures 
any  year  since. 

For  the  seven  years  ending  with  June  30,  1881,  the  export  of  refined 
sugar  to  the  Argentine  Republic  aggregated  21,061,012  pounds,  valued 
at  $2,038,873,  which  gives  an  annual  average  of  over  3,000,000  pounds, 
and  an  average  value  of  nearly  $300,000.  Compare  this  with  the  export 
for  the  seven  years  ending  June  30, 1888,  for  which  period  the  aggregate 
quantity  was  2,585,295  pounds,  and  the  value  $188,913,  and  it  will  be 
seen  that  the  aggregate  exportation  of  refined  sugar  to  the  Argentine 
Republic  for  the  past  seven  years  was  considerably  below  the  annual 
average  for  the  seven  years  preceding  1882.  These  figures  are  the  more 
suggestive  and  significant  in  view  of  the  fact  that  the  Argentine  Re- 
public has  largely  increased  its  commerce  and  population,  and  materi- 
ally developed  its  great  material  resources  since  1875,  the  exports  from 
the  United  States  alone  having  increased  from  $1,439,618  in  1875  to 
$6,643,553  in  1888. 

STEADY  FALLING  OFF  IN  THE   TRADE. 

Similar  results  are  found  in  the  export  of  refined  sugar  to  Uruguay. 
The  fluctuations  were  marked  between  1870  and  1881.  For  the  year 
1881  the  exportation  was  valued  at  $224,740.  Since  then  it  has  steadily 
declined  until,  like  that  of  the  Argentine  Republic,  the  export  of  refined 
sugar  to  Uruguay  has  almost  dwindled  out  of  sight. 

While  the  export  of  refined  sugar  to  the  Argentine  Republic  and  Uru- 
guay has  declined  to  insignificant  figures  the  past  two  years,  it  is 
worthy  of  notice  that  the  entire  export  of  this  commodity  has  had  a 
very  large  decline.  Small  as  it  was  in  1888,  it  was  still  smaller  for  the 
year  ending  June  30,  1889,  the  figures  being  14,167,216  pounds,  valued 
at  $1,070,236.    Compared  with  1888,  however,  there  was  no  diminution 


300  TRADE    AND    'J'RANSPOK'lAl'lON  P.KTWEEN 

in  the  aggregate  qnantity  sent  to  Spanish  American  conutries.  The 
large  falling  otf  is  explained  by  the  fact  that  Great  Britain,  which  re- 
ceived neaily  10,000,000  pounds  in  1888,  received  only  527,111  pounds 
the  last  fiscal  year. 

GROWTH  OF  BEET   SUGAR. 

There  can  be  no  donbt  that  the  beet  sugar  of  Europe,  the  manufact- 
ure of  which  is  steadily  increasing,  is  displacing  the  cane  sugar  of 
America.  For  the  year  ending  June  oO,  1889,  the  quantity  of  beet 
sugar  imported  into  the  United  States  reached  24:3,471,041  pounds, 
against  less  than  62,000,000  pounds  during  the  preceding  year.  This 
is  a  more  serious  question  to  the  cane-sugar-growing  countries  than  to 
the  United  States.  The  United  States  furnishes  the  principal  market 
for  cane  sugar,  and  requires  a  large  proportion  of  the  annual  importa- 
tion for  home  consumption.  Every  ton  of  beet  sugar  received  here 
from  Europe  displaces  a  ton  of  cane  sugar  grown  in  Spanish  America. 
The  South  American  countries  must  have  refined  sugar,  and  a  sound 
public  policy  as  well  as  a  desire  to  protect  their  own  crop  should  induce 
the  people  of  those  countries  to  purchase  from  the  United  States  their 
own  sugar  in  the  refined  form  rather  than  the  beet  sugar  of  Germany, 
France,  and  Belgium. 

SUGAR  IMPORTS  FROM  BRAZIL. 

The  importation  of  sugar  into  the  United  States-from  Brazil  averages 
about  $7,000,000  per  year,  yet  Brazil  receives  no  refined  sugar  from  the 
United  States  worthy  of  being  recorded  specifically  in  the  official  com- 
mercial reports,  and  the  Argentine  Kepublic  and  Uruguay  are  now  also 
supplied  from  European  markets.  It  is  probable  that  some  of  the  sugar 
thus  received  is  cane  sugar  exported  from  the  United  States  to  Europe, 
which  finds  entrance  to  South  America  through  thesni>erior  transi)orta- 
tion  facilities  established  between  Europe  and  South  America.  While 
this  fact  furnishes  an  argument  for  the  establishment  of  regular  and 
rapid  communication  between  the  two  American  continents,  the  people 
of  South  America  should  not  lose  sight  of  the  more  important  fact  to 
them,  that  to  encourage  the  beet-sugar  industry  of  Europe  is  certain  to 
operate  against  the  value  and  the  development  of  their  crop  of  cane 
sugar. 

During  the  years  1880  and  1881  the  Argentine  Ilepublic  received  from 
the  United  States  0,400,000  pounds  of  refined  sugar.  In  1882  there  was 
exported  to  that  country  from  the  United  States  only  201,13.)  i)ouiids. 
Since  then  the  annual  export  has  fluctuated,  rising  to  758,000  pounds 
in  1884,  dropping  to  584  pounds  in  1888,  and  again  rising  to  32,452 
pounds  for  the  year  ending  June  30,  1880.  For  the  past  ten  years 
the  aggregate  exportation  was  9,027,081  pounds,  nearly  two-thirds  of 
which  were  exported  in  1880  and  1881.  These  figures  are  taken  from 
United  States  custom-house  reports.  The  vessels  which  carried  this 
merchandise  cleared  for  Argentine  ports,  but  some  of  it  undoubtedly 


THE    UNITED    STATES    AM)    EATIN    AMERICA.  oOl 

was  delivered  to  Uruguay  and  other  neijrliboring  countries,  and  doubt- 
less was  transsbii)[)ed  to  the  Ai-gentine  llei)ublic. 

EUEOPEAN   SUGAR  IN   SOUTH  AMERICA. 

But  it  is  plainly  apparent  that  the  beet  sugar  of  Europe  is  gaining 
ground  in  America,  and  particularly  south  of  the  equator.  From  offi- 
cial returns  of  the  Argentine  Governmout  it  appears  that  the  imports 
of  sugar  from  France,  Germany,  Holland,  and  Belgium  have  steadily 
and  largely  increased  the  past  few  years.  Thus  in  1880  there  was  re- 
ceived from  Belgium  0,000,000  pounds;  France,  7,000,000  pounds;  Ger- 
many, 1)45,000  pounds;  Holland,  3,000,000  pounds.  In  1887  there  was 
received  from  Belgium  13,000,000  pounds;  France,  22,000,000  pounds ; 
Germany  nearly  0,000,000  pounds,  and  Holland,  nearly  3,000,000  pounds. 
Large  as  these  figures  are,  they  were  exceeded  in  1884,  when  the  imports 
from  the  four  countries  named  reached  54,000,000  pounds,  while  there 
was  received  the  same  year  from  the  United  States  only  17,000  pounds. 

In  the  seven  years  ending  with  the  Argentine  fiscal  year  1887  the  ag- 
gregate imports  of  sugar  was  329,002,094  pounds,  of  which  89  percent, 
was  received  from  Eurojie,  the  aggregate  imported  from  the  United 
States  being  7,228,182  pounds,  against  293,000,000  received  from  Europe. 
In  the  same  period  over  24,000,000  pounds  were  received  from  Uruguay. 
As  Uruguay  received  during  the  last  nine  years  less  than  0,000,000 
pounds  from  the  United  States,  it  follows  that  a  very  large  proportion 
of  the  24,000,000  pounds  exported  to  the  Argentine  liepublic  was  from 
Europe.  It  can  not  be  reasonably  claimed  that  any  considerable  quan- 
tity of  European  sugar  received  in  the  Argentine  Republic  from  Europe 
was  cane  sugar  exported  from  the  United  States,  because  the  beet-pro- 
ducing countries  of  Europe  receive  comparatively  small  quantities  of 
refined  sugar,  and  the  sugar  exported  to  the  Argentine  Republic  from 
England  for  the  i^eriod  above  named,  which  country  receives  the  bulk 
of  the  refined  sugar  exported  from  the  United  States  to  Europe,  was  only 
7,087,830  pounds. 

THE   SALES  OF  REFINED   SUGAR  IN  BRAZIL. 

What  is  true  of  the  sugar  trade  of  the  Argentine  Republic  is  true 
also  of  that  of  Brazil  and  Uruguay.  In  the  ten  years  ending  June,  1889, 
less  than  150,000  pounds  of  refined  sugar  went  from  the  United  States  to 
Brazil,  and  about  5,000,000  pounds  to  Uruguay.  The  export  of  sugar 
to  those  two  countries  from  the  United  States  has  practically  ceased 
for  the  past  three  years.  As  before  intimated,  it  is  probable  that  the 
lack  of  direct,  regular,  and  frequent  steam-ship  communication  be- 
tween tlie  two  American  continents  is  largely  responsible  for  the  steady 
and  rapid  growth  of  the  sugar  trade  between  South  America  and  Eu- 
rope. With  direct  lines  of  steam-ships  it  is  reasonably  certain  that  the 
United  States  would  supply  that  continent  with  the  bulk  of  the  refined 
sugar  consum64  there, 


302 


TRADE  AND  TRANSPORTATION  BETWEEN 


The  fact  that  the  Argentine  Republic  alone  purchases  about  40,000,000 
pounds  of  refined  sngar  shows  tlie  extent  and  value  of  this  one  com- 
modity as  an  article  of  connuerce,  and  should  suggest  to  the  United 
States  authorities  the  importance  of  doing  something  to  establish  and 
maintain  rapid  ocean  communication  with  the  Spanish-American  coun- 
tries. 

STRUGGLE  BETWEEN  THE  BEET  AND  THE  CANE. 

There  is  another  and  equally  important  consideration  in  this  conuec* 
tion.  The  maintenance  and  extension  of  the  manufacture  of  refined 
sugar  in  the  United  States,  and  the  continuance  of  the  profitable  cul- 
tivation of  sugar  cane  in  the  West  Indies,  Central  and  South  America 
are  involved.  lu  America  at  least  it  promises  to  become  a  struggle  be- 
tween the  sugar-beet  of  Europe  and  the  sugar-cane  of  the  American 
continents,  and  unless  something  be  speedily  done  reciprocally  by  the 
governments  and  people  of  America  to  j)rotect  sugar-cane  and  the  man- 
ufacture of  refined  sugar,  there  is  danger  that  beet  sugar  grown  and 
manufactured  on  the  European  continent  will  become  supreme  in  all 
the  countries  of  South  America  and  exclusive  in  a  number  of  them. 
As  previously  stated,  the  United  States  now  exports  to  South  America 
and  the  West  Indies  about  12,000,000  pounds  of  refined  sugar  annually, 
while  Europe  exports  to  the  Argentine  Kepublic  alone  three  times  that 
amount.  The  shipments  of  refined  sugar  from  France  to  the  Argentine 
Kepublic  now  exceed  in  quantity  and  value  the  aggregate  of  that 
shipped  to  all  the  Spanish  American  states,  and  has  done  so  since  1881. 

SUGAR  TRADE  IN  THE  ARGENNINE  REPUBLIC. 

The  extent  of  the  exports  of  refined  sugar  from  Europe  to  South 
America  will  be  seen  from  the  annexed  table,  which  shows  the  quan- 
tity in  pounds  received  in  the  Argentine  Eepublic  for  the  eight  years 
ending  with  the  Argentine  fiscal  year  1887,  from  the  United  States, 
Uruguay  and  other  South  American  countries,  and  countries  of  Europe. 

QuantUy  of  refined  sugar  imported  into  the  Argentine  Bepuilio  for  the  eight  Argentine 
fiscal  years  ending  withlS87,  and  from  what  countrlea  imported, 

[From  Argentine  official  reports.] 


Years. 

United 
States. 

Uruguay. 

Europe. 

Brazil,  etc. 

Total. 

18S0 

18S1 

Pottndg. 

I,  738, 2'J9 

4,  5;i5,  (183 

108,294 

1511, -JSO 

17,  194 

59,  744 

329,071 

2S9,  047 

Fovnds. 

301,216 
1,240,294 

2,  003,  030 

3,  034,  427 
4,505,055 
3,  250,  798 
5,344,890 
4,009,482 

Pounds. 
18,9»1,037 
28,731,119 
29,  749,  8f,'i 
40,  887,  931 
58,  518, 009 
35,  438,  ?55 
34,  539,  881 
40, 152,  004 

Poundf. 

""2,' 20.5,' 758' 

45,  430 

170, 400 

Pounds. 
21,021,152 

DoUart. 
1. 618, 757 

1882 

30'  5Q7'  '>()(3         9'  7<;i'  19S 

1883 

44,  243,  008 
6.3,041,518 

39,  645,  476 

40,  218,  355 
50,513,005 

3, 739,  834 
5, 148, 132 
3,  207,  751 

1884 

MiHj 

890,  079 
3,  9(17 
1,332 

188t) 

1887 

4  201  038 

Total 

7,  228, 182 

?4,  35a.  398 

293,  000,  548 

3,  370,  906 

329,  962,  094 

96,  851, 068 

THE    UNITED    STATES    AND    LATIN    AMERICA. 


303 


The  growth  of  the  sugar  trade  between  Europe  and  South  America 
may  be  inferred  from  the  annexed  table,  which  shows  the  quantities  and 
vahies  of  refined  sugar  imported  into  the  Argentine  liepublic  from 
the  several  countries  named  for  the  Argentine  fiscal  years  1880  to  1887 : 


Tears. 

Eelj;ium. 

France. 

Germany. 

1880 

Pounds. 
6,001,274 

6,  402,  759 
5,18.5.541 
4,  G8G,  52.', 
7,433,319 
8,  00.5,  054 

7,  044, 144 
13,  374, 464 

Dollars. 
461,152 
653,  336 
408,  804 
378,  49!) 
621,610 
659, 159 
585,  823 
1,  111),  036 

Potmds. 
6,  909,  603 
10,510,9  0 
14,  073,  344 
20,  00!),  748 
27,464,014 
16,283,186 
15,871,449 
21,983,633 

Dollars. 
540,  498 
703,  296 
1,09;;,  702 
1,751,009 
2,  186.  339 
1,  32K,  912 
1,319,997 
1, 828, 350 

Pomids. 

943, 103 
3.  135,  589 
3,  741,  376 
10,072,539 
9,  628,  8.53 
6,  382,  058 
2,374,458 
5, 605, 066 

Dollars. 
78,58a 
24*  5''9 

1881 

1882 

317,191 
833  250' 

1883  

1884 

1, 047]  386 
484,  207 
197,475. 
466, 17a 

1885 

1886 

1887 

Tears. 

Holland. 

Italy. 

Sp 

lin. 

Great  Britain. 

1880 

Pou7ids. 

2,  904,  993 

3,  869,  655 

4,  976,  554 

3,  167,  728 
9,491,182 

4,  347,  706 
7,  000,  635 
2,  987,  348 

Dollars. 
216,201 
282,  812 
580,  404 
259, 1U6 
589,  382 
360, 800 
582,  198 
248, 418 

Pounds. 

22,  383 
214,  764 

Dollars. 

1,715 

17, 166 

Pounds. 
43,  055 
58, 193 

Dollars. 
3,298 
4,585 

Pounds. 

1,  955,  300 

1,  289,  448 
29.->,  031 

1,010,110 
645,  555 
199,  021 
935, 431 
757,  844 

Dollars. 

148,848 
97,  568 
22  765 

1881 

1882 : . . 

1883 

42,  496 

50,  706 

1,433 

3.346 

4,217 

82 

83  633 

1884 

1885 

148,  899 

5,050 

47,  626 
16,  040 
77, 797 

1886 

1887 

123, 071 

10,  285 

366,  074 

30,445 

63  028 

r)4 


TKADi;  AN!)  ti;an«poutation  between 


III. 


THE  WOOL  TRADE  OF  THE  UNITED  STATES. 


By  John  M.  Cakson,  late  Clerk  Committee  on  Ways  and  Means,  LLouse  of  llepresentatives. 


The  inipoitatiou  of  wool  into  tlio  United  States,  ol'all  grades,  for  the 
six  years  ending  June  30,  1889,  which  covers  the  entire  period  of  the 
operations  of  the  present  tariff  act  (March  3,  1883),  aggregated 
632,116,290  i)Ounds,  valued  at  $88,296,931.  Of  this  total  quantity 
450,641,969  pounds  were  carpet  wools,  the  wools  of  this  class  consti- 
tuting 71.3  per  cent,  of  the  entire  importations  for  the  six  years.  I*rior 
to  the  passage  of  the  present  tariff  law  imported  wools  were  not  classi- 
lied  in  the  Treasury  Keport  on  Commerce  and  Navigation,  but  a  classi- 
lication  is  made  in  the  tables  furnished  in  the  annual  reports  showing 
the  quantities  and  values  of  merchandise  entered  for  consum])tion. 
The  annexed  table  shows  the  quantities,  in  pounds,  of  each^f  the  three 
grades  of  wool  imported  into  the  United  States  for  the  six  fiscal  years 
ending  June  30,  1889: 


Tear. 

ClothlDg. 

Combing. 

Carpet. 

Total. 

1884     

21,175,228 
11,  475,  889 
40,  068.  537 
17,  903,  982 
23,  039,  679 
29, 220,  317 

4,414  252 
2,  780,  751 
7,  198,  534 
10,721,753 

5,  639,  528 

6,  869,  871 

52,761,170 
50  339,  5S0 
80,  917,  887 
85,  352,  295 
8 1, 87!),  ,546 
90,391,541 

78,  350,  650 
70  596  170 

1885 

1S8G 

1887 

129,084,958 
114,0.>8,030 
113  558,753 

1888 

1889 

120,487,729 

Total 

143,  819,  632 

37,  624,  689 

450,641,969 

632,116,290 

IMPORTS   OF  VARIOUS  -GRADES  OF  WOOL. 

During  the  four  fiscal  years  preceding  the  period  above  tabulated 
the  aggregate  inportation  of  wools  was  322,532,905  or  an  annual  aver- 
age of  80,633,226  pounds  against  an  annual  average  of  105,352,715  pounds 
during  the  past  six  years.  A  comparison  of  the  two  periods  named 
shows  that  the  annual  increase  in  the  importation  of  the  two  higher 
grades  since  July  6,  1883,  was  only  about  3,300,000  ])ounds  ])er  annum 
in  clothing- wool,  and  about  1,000,000  i)Ounds  in  combiug-wool,  while 
the  increase  in  carpet  wools  was  equal  to  an  annual  average  of  over 
38,000,000  ])Oun(Ls.  In  order  that  comparisons  may  be  intelligently  and 
correctly  made  between  the  iniportations  of  wool  prior  to  and  since  the 


THK    UNITED    SrATHS    AND    LATIN    AMERICA. 


305 


passage  of  the  i)iosent  tarift"  law,  tables  are  annexed  showing  quantities 
and  values  and  amount  of  duty  collected  on  the  several  grades  of  wool 
entered  for  consumption  the  past  twelve  y6ars,  which  include  six  years 
under  the  present  and  six  years  under  the  preceding  tariff. 


Year  emliujr  Juuo  AG- 


ISTS 
1879 
1880 
1881 
1882 
]88:t 
1881 
1885 
1886 
1887 
1888 
1889 


Clasa  No.  1. — Clothing  wools. 


Quautity. 


Pounds. 
9,916,012 
5,  229,  987 
26,  785,  172 
20,  609,  707 
13,  489,  9J3 
11,546,530 
20,  703,  843 
13,  472,  432 
23,  321,  758 
23, 195,  734 
16,952,513 
29,  226,  317 


Value. 


Dollars. 

2,  431,  043 
1,114,301 
6,412,273 
4,751,4.54 

3,  012,  407 
2,  567,  443 

4,  700,  605 

2,  994,  533 
4,344,189 
4,  339,  498 

3,  648,  779 
5,971,246 


AmoTint  of 
duty  r  o  - 
ceived. 


Dollars. 

1,  273,  479 
647,  340 

3,  512,  896 

2,  599,  686 
1,693,0  "8 
1,  444,  949 
2,111,279 

1,  357, 102 
2, 437,  049 

2,  395,  537 
1,  789,  348 


Class  No.  2. — Combing  wools. 


Qaantity. 


Pounds. 

3,  028,  869 

1,  709,  601 
13,  266,  856 

4,421,491 

2,  318,  671 
1,  373, 114 

4,  474,  396 
3,891,914 

4,  872,  739 
9,  703,  962 

5,  568,  0G8 

6,  869, 871 


Value. 


Dollars. 

969,  683 

413,  761 

.3,801,7.30 

1,271,332 

648,  252 

343,  987 

1,058,758 

921,  252 

1,106,  116 

2,  270,  058 

],,322,862 

1,586,079 


Amount  of 

duty  r  e  - 

coived. 


Dollars. 
425,  220 
218,410 
1,  783,  362 
585,  502 
301,  130 
176,  183 
451,521 
3t4,  901 
4  JO,  010 
974, 179 
562,  198 


Year  eudinj'  June  30- 


1878. 
1879. 
1880. 
1881. 
1882. 
1883. 
1884. 
1885. 
1886. 
1877. 
1888. 
1889* 


Class  No.   3. — Carpet  wools  and 
other  similar  wools. 


Quantity. 


Pounds. 
26,  856,  280 
33,  163,  054 
.'■•9,320,412 
42,  38.5,  769 
47,  208,  175 
40, 130, 323 
62,  525,  692 
50,  782,  306 
79,  716,  052 
81,  504,  477 
74,710,  396 
90,391,511 


Vahie. 


Dollars. 
3,  .591, 640 
3,  988,  752 
7, 699,  663 
6, 038,  041 
6,642,699 
5,  580,  558 

7,  833,  9:i6 
5,  558,  479 

8,  343,  908 
9,741,814 

9,  090,  459 
10,  417, 190 


Amonnt  of 
duty  re- 
ceived. 


Dollars. 
1,  015,  697 

1,  100,  524 

2,  077,  959 
1,675,  6  iO 
1,857,442 

1,  553, 498 
1,960,025 
1,412,285 

2,  198, 149 
2,530,  100 
2.377,941 


Total  wools. 


Quantity. 


Pounds. 
39,  801, 161 
40, 102,  642 
99,  372, 449 
67,416,907 
63,016,769 
53, 019,  907 
87.703,931 
68,  146,  652 
107,910,549 
114,401,175 
97,  231,  277 
126,487,729 


Value. 


Dollars. 

6,  995,  366 

5,516,814 
17,  913,  6(.6 
12,060,827 
10,  333,  358 

8,491,988 

13,  593,  299 
9,  474, 264 

13,794.213 
16,351,370 

14,  062,  100 
17,  974,  515 


Amount  of 

duty 

received. 


Dollars. 
2,714,396 
1,966,276 
7,  374,  217 
4,8G0,  816 
3,  8.54,  653 

3,  174,  628 

4,  522,  825 

3,  164,  296 
5,126,  108 
5,899,816 

4,  729,  487 


Aggregate  Imported. 


SOURCES   OF   SUPPLY  FOR   THE   UNITED   STATES. 


The  l)ulk  of  this  wool  is  received  from  the  countries  of  Europe  and 
Asia.  From  the  Latin-American  countries  there  were  received  for  the 
nine  years  ending  June  30,  1888,  nearly  170,000,000  pounds,  which  is 
equal  to  an  annual  average  of  nearly  19,000,000  pounds.  More  than 
one  half  of  all  the  wool  received  from  Spanish- American  countries  comes 
from  the  Argentine  Eepublic.  In  1880  the  importation  from  those 
countries  reached  28,550,000  pounds,  and  in  1886  over  30,130,878  pounds. 
These  were  unusually  large  importations.  In  the  latter  year  there  were 
received  from  Uruguay  nearly  13,000,000  pounds,  nearly  all  of  which 
was  clothing  wool ;  indeed,  the  greater  portion  of  the  wool  now  received 
S.  Ex.  51 20 


306 


TRADE  AND  TRANSPORTATION  BETWEEN 


from  Uruguay  is  clothing  nyooI,  which  shows  that  the  breed  of  sheep  in 
that  country  is  being  improved.  Clothing  wool  is  also  received  from 
the  Argentine  Republic,  Brazil,  Chili,  and  Mexico,  but  in  small  quanti- 
ties. The  annual  average  of  clothing  wools  received  Irom  all  American 
countries  south  of  the  United  States  for  the  five  years  ending  June  30, 
1888,  was  5,307,586  pounds.  The  annexed  table  shows  the  quantities  of 
wool  imported  from  Mexico,  the  Dutch  AVest  Indies,  and  countries  of 
South  America  for  the  nine  years  ending  June  30,  1888 : 

Wool  imports  hy  countries. 


Tears. 

Argentine 
Republic. 

Braz.il. 

Chili. 

Mexico. 

Peru. 

Dutch 
W.I. 

Uruguay. 

Vene- 
zuela. 

1880 

Pounda. 

12,  278,  776 

6,  163,  223 

9,821,234 

8,691.873 

(       *37, 693 

\    5,279.290 

C     *371, 6J6 

)    9,851,121 

(  *1,  653,  288 

I  10, 450,  556 

(       *58, 682 

\    6,228,300 

c 

Pounds. 

839,  424 

668, 163 

493,  .505 

1,  269, 159 

*34I,8C8 
185, 058 

Pounds. 
3,329,156 
1,852,721 
2,  534,  219 
1,  099,  200 

*77,  949 
1,  036,  706 

*3(;,  096 

1,  704,  509 
*  170,  917 

1,775,188 
'520,  0.-)9 

2,008,617 
'120,  880 

2,  Oil,  877 

Pounds. 

1,321,874 

1,  009,  376 

191,  666 

Pounds. 

Pounds. 

Potinds. 

9,  577,  309 

4,823,-502 

6,  894,  885 

5,920.713 

*1,  638, 108 

961, 193 

*2, 123,  040 

1, 388, 405 

*12, 362,  329 

592,  958 

*2,  585,  292 

306,189 

*2,  595,  419 

826,  076 

Pounds. 
202  056 

1881 

35,  339 

17  339 

1882 

183,  896 

8  068 

1883 

22,  600 

8  100 

1884.- 

438,  223 

4,094 

8,917 

1885 

890,  760 
♦1,  050,  476 
508,  650 
*23,5,  028 
371, 034 
271,072 
427, 155 

1,  561,  026 
*130,  930 

2,  247,  724 
*431,  520 

1,  417, 197 

*  12, 589 

69,  767 

20, 201 

14. 386 

*510 
150,  1:j8 

1886 

12,  052 

13,156 

1887 

16,  645 

16,645 

15,  070 

1888 

\  11, 000,  584 

1,633 

22,  928 

1,445 

*  Clothing  wools. 


AMOUNT   OF   CARPET  WOOL   IMPORTED  BY  THE   UNITED   STATES. 

It  will  be  seen  by  comparing  the  tables  showing  quantities  and  values 
of  wool  entered  for  consumption  with  that  above  given  that  only  about 
one-fifth  of  the  carpet  wools  annually  imported  into  the  United  States 
came  from  American  countries.  About  80,000,000  pounds  of  carpet 
wools  are  now  annually  imported  into  the  United  States,  and  of  this 
not  more  than  15,000,000  pounds  come  from  American  countries. 
France  receives  from  the  Argentine  Republic  twenty  times  ami  Ger- 
many ten  times  the  quantity  that  is  received  by  the  United  States. 
Thus,  in  1888,  the  United  States  received  wool  from  that  Kepublic 
valued  at  $1,178,000,  while  France  in  1880  received  over  $20,000,000, 
and  Germany  $10,677,394.  Uruguay,  Chili,  and  Peru  also  export  more 
wool  to  Europe  than  to  the  United  States.  This  condition  of  affairs 
would  be  changed  were  there  direct  and  frequent  steam  communication 
between  the  North  and  South  American  continents,  by  which  the  manu- 
factured products  of  the  former  could  be  exchanged  for  the  wool  and 
other  raw  materials  of  the  latter. 

WOOL  IMPORTS  IN  1888. 

To  show  the  quantities  and  values  of  carpet  and  clothing  wools  im- 
ported from  the  various  countries  of  the  world^  the  following  table  is 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


307 


introduced  <^liicli  exhibits  the  imports  from  thccountries  named  fortha 
fiscal  year  ending-  June  30,  1888  : 


Countries. 


Argentine 

Brazil 

Chili 

Mexico 

Peru 

Dutch  West  Indies . 

V ruguay  

Vont3iiuela 


China 

Frauce 

Germany 

Englaud . 

Scotland ... 

British  East  Indies  , 
Australia 


Italy 

Ja]>an 

Netherlands 
Rouniania  . .. 

Kussia 

Turkey 

All  others  ... 


Carpet  wool. 


Quantity.        Value 


Pounds. 

11,  000,  .58 1 

427,  ir)5 

2,011,877 

69,  767 

1,633 

22,  928 

826,  076 

1,445 


14,361,46.1 


Total 84,879,546 


Dollars, 

1, 178,  003 

38,  323 

217,  987 

5,084 

198 

1,282 

76,  658 

76 


1,  518,  208 


38.5,  351 

0  i7,  380 

37,  716 

646,  696 

319,  625 

42,  358 

180 

6,439 

1,  565 

11,  529 

5,248 

894,  072 

080,  165 

547,  086 


10,015,410 


Clothing  wool. 


Quantity.      Value, 


Pounds. 


271,  072 

120,  880 

12,  589 


2,  595,  419 


2,  999.  960 


84,577 

295,  044 

7,  292 

11,345,879 


6, 133, 191 


Dollars. 


26,  678 
12,  068 
1,406 


309, 045 


349, 197 


9,785 

53,  561 

4,170 

2,  574, 067 


1, 172,  879 


During  the  year  1888  there  was  withdrawn  for  consumption  and  duties 
paid  upon  the  several  grades  of  imi)orted  wools,  as  follows : 


Articles. 

Quantity. 

Duties. 

Pounds. 
16,952,513 

5,  568,  0G8 
74,710,696 

Dollars. 

1,  789,  347 
562, 198 

2,  377, 941 

Total 

97,  231,  277 

4,  729, 486 

The  domestic  production  for  the  year  was  269,000,000  pounds,  of  which 
less  than  23,000  pounds  were  exported.  The  quantity  of  wool,  there- 
fore, which  may  be  said  to  have  been  consumed  in  the  United  States 
the  year  named  w.is,  in  round  numbers,  343,000,000  pounds. 

WOOL   CROP   OF   THE   UNITED   STATES. 

In  respect  to  the  kinds  of  wool  grown  in  the  United  States,  Mr.  J.  R. 
Dodge,  Statistician  of  the  Department  of  Agriculture,  writes  as  fol- 
lows: 

The  first  of  the  three  classes  is  clothing  wool.  This  is  the  fleece  of  full-blood  and 
grade  Merino,  of  fine,  short  fiber,  remarkable  for  its  felting  quality.  These  wools  are 
prepared  for  raannfacture  by  carding  rather  than  combing.  The  highest  type  of  this 
race,  the  registered  thoroughbred,  is  found  in  Vermont,  where  breeding  flocks  are 
more  numerous  than  elsewhere,  and  in  considerable  numbers  in  weatero  New  York, 
Ohio,  and  Michigan,  and  scattered  through  the  Western  States. 


306         TRADH  AND  TRANSPORTATION  BETWEEN 

The  Merino  type  of  wools  prevails  almost  exclusively  in  the  tLree  States  named,  in 
Texas,  ami  tbroii<;bout  the  Kocky  Mountain  and  Pacific  coast  areas.  Few  sheep  of 
other  blood  are  found  west  of  the  Missouri  River. 

Western  Pennsylvania  and  West  Virginia  furnish  wool  of  the  Merino  type  mainly. 
The  sea-board  States  of  New  England  also  furnish  some  grade  wools  of  this  type. 

The  second  class,  the  combing  wool  of  the  tariff  classification,  includes  the  medium 
and  long  wools  of  the  English  breeds,  tlio  Cotswold,  Leicester,  Lincoln,  several  fami- 
lies of  Downs,  and  other  breeds  of  long  and  coarse  wool,  also  popularly  known  as  the 
mutton  breeds.  These  are  few  in  number  compared  with  the  Meriuo  type.  Nearly  all 
the  sheep  of  the  South,  exclusive  of  Texas,  are  of  this  class,  mostly  descendants  of 
the  less  improved  English  sheep  of  a  hundred  years  ago,  with  occasional  infusions  of 
better  blood  from  England,  Canada,  or  the  Northern  States.  In  Kentucky  probably 
99  per  cent,  are  of  the  combing- wool  class.  A  considerable  portion,  too,  are  highly 
improved,  giving  to  this  State  the  reputation  of  having  a  larger  proportion  of  high- 
quality  mutton  than  any  other  State. 

In  the  vicinity  of  the  Atlantic  cities,  from  Maine  to  Virginia,  sheep  husbandry  is 
principally  lamb  production,  the  males  being  Eowns  or  other  English  breeds,  and  the 
ewes  grades  of  both  the  Merino  and  the  English  types.  This  combination  produces 
a  mixed  wool  of  a  useful  character.  Then  there  are  considerable  numbers  of  the 
English  breeds,  though  fewer  than  the  Merino,  scattered  through  the  Western  States, 
from  Ohio  to  Kansas,  and  a  still  smaller  proiJortiou  on  the  Pacific  coast  and  in  the 
Territories. 

As  to  the  third  class,  the  carpet  wools,  they  are  represented  in  the  United  States 
only  by  the  Mexican  sheep,  which  are  the  foundation  of  a  large  proportion  of  the 
ranch  flocks,  but  so  improved  by  repeated  crosses  as  to  furnish  wool  of  the  Meriuo 
type,  much  of  it  of  high  grade. 

EFFECT  OF  A  REMOVAL   OF  THE  DUTY  ON  CARPET  WOOLS. 

While  it  is  a  disputed  question  wbetlier  the  removal  of  the  duty  of 
2.J  cents  per  pound  on  carpet  wools  imported  into  the  United  States 
would  interfere  with  the  growth  of  domestic  wools,  it  is  generally  in- 
sisted by  American  manufacturers  of  carpets  that  additional  quantities 
of  this  class  of  wool  are  necessary  to  the  healthy  development  of  the 
carpet  trade  of  the  United  States,  and  the  maintenance  of  low  prices 
for  all  grades  of  carpets,  and  particularly  of  the  cheaper  qualities.  The 
carpet  wools  are  not  produced  in  any  considerable  quantities  in  the 
United  States,  and  this  production  will  grow  steadily  less  as  the  breed 
of  sheep  is  improved.  The  i^roduction  of  these  coarse  wools  is  now 
mainly  confined  in  the  United  States  to  Colorado,  New  Mexico,  and 
Texas,  and  does  not  exceed  50,000,000  pounds  per  annum.  It  is  doubtful 
if  the  removal  of  the  duty  would  materially  allect  the  price  of  carpets. 
Assuming  that  a  pound  of  wool  is  consumed  in  the  manufacture  of  one 
yard  of  carpet,  and  allowing  for  waste,  the  duty  adds,  say,  3|  cents  to 
each  yard  of  carpet.  The  remission,  therefore,  would  not  be  likely  to 
affect  the  price  to  the  consumer  more  than  prices  are  naturally  affected 
by  the  variations  incidental  to  the  operations  of  supply  and  demand. 

COARSE  WOOL  AND   THE   CARPET  TRADE. 

It  would  seem,  in  view  of  the  rapid  growth  of  the  carpet  trade,  and 
the  fact  that  the  manufacturers  of  the  United  States  must  look  to  for- 
eign countries  for  coarse  wool,  that  the  assurance  of  a  steady  and  ample 


THE    UNITED    STATES    AND    LATIN    AMERICA.  309 

snpply  of  niJ¥torial  at  a  fair  price  is  uiore  important  than  a  reduction 
or  abolition  of  tlie  present  rate  of  duty.  The  coarse  wools  of  South 
America  being  needed  in  the  United  States,  methods  should  be  devised 
by  which  the  bulk  of  them  might  be  brought  here  instead  of  being  sent 
to  Europe.  It  would  be  undoubtedly  to  the  advantage  of  both  Ameri- 
can continents  if  the  United  States  could  so  manage  as  to  purchase 
70,000,000  pounds  per  annum  from  South  America  instead  of  from  Eu- 
ropean and  Asiatic  countries,  as  is  now  the  case.  Why  should  the 
United  States  purchase  from  England  annually  26,000,000  pounds  of 
carpet  wool,  the  growth  of  Australia  and  other  countries  beyond  the 
seas,  and  only  about  15,000,000  pounds  from  all  the  neighboring  coun- 
tries of  America?  From  Russia  we  purchase  16,000,000  jiounds ;  Turkey, 
11,000,000  pounds,  and  France,  9,000,000  pounds,  and  yet  we  buy  less 
than  10,000,000  pounds  from  the  Argentine  Republic,  the  largest  pro- 
ducer of  this  class  of  wool  among  the  South  American  countries,  and 
next  to  Australia  the  largest  producer  in  the  world. 

The  introduction  of  manufactured  products  of  the  United  States  into 
South  American  countries  would  require  an  increase  of  facilities  for 
direct  and  rapid  transportation,  and  this  would  insure  outgoing  vessels 
return  cargoes  of  wool  and  other  raw  products  of  those  countries  which 
now  go  to  Europe  in  exchange  for  manufactured  articles,  many  of  which 
are  far  inferior  to  similar  articles  that  could  be  exported  from  the  United 
States,  with  equal  advantage  to  the  consumer  as  to  price. 

VALUE  OF  SOUTH  AMERICAN  MARKETS. 

In  a  communication  to  the  New  York  Tribune  of  September  23,  dis- 
cussing the  South  American  trade  and  the  importance  of  the  conven- 
tion to  be  held  in  October  at  Washington,  Mr.  Francis  Wayland  Glen 
said  of  the  establishment  of  steam  communication  between  the  Ameri- 
can continents : 

Direct,  frequent,  rapid,  regular,  and  permanent  access  to  South  American  ports  ia 
tlie  first  requisite  to  obtaining  our  legitimate  sliare  of  tlie  large  foreign  trade  of  those 
countries.  That  once  secured,  we  can  repeat,  on  a  very  much  larger  scale,  what  we 
have  done  in  Canada,  and  obtain  the  lion's  share  of  their  trade.  Without  it  treaties 
of  reciprocity  will  not  bear  much  fruit.  To  secure  proper  communication  between 
our  leading  sea-ports  and  those  of  South  America  our  Government  must  take  the  ini- 
tiative. We  must  grant  liberal  subsidies  for  a  considerable  period  of  years  to  induce 
capitalists  to  construct  and  run  between  these  ports  steamers  of  a  high  class.  It 
should  not  be  any  half-way  measure,  but  so  liberal  as  to  secure  prompt  acceptance 
from  responsible  persons  or  companies.  It  should  be  done  at  once  so  as  to  induce  a 
largo  number  of  South  Americans  to  visit  our  Exposition  in  1892,  and  study  our 
markets.  The  Congress  soon  to  assemble  here  will  tend  to  interest  the  people  of 
South  America  in  our  productions,  but  we  shall  fail  in  reaping  the  full  benefit  With- 
out direct,  rapid,  frequent,  and  regular  communication,  upon  such  a  financial  basis 
as  will  create  confidence  in  both  countries  in  its  permanency. 

We  are  on  the  verge  of  reaping  enormous  advantages  from  our  protective  policy  ; 
we  have  laid  the  foundation  for  a  mighty  manufacturing  industry.  Its  growth,  de- 
velopment, and  beneficent  results  in  the  near  future  will  confound  the  wisdom  ot 
those  who  denounce  our  fiscal  policy.     By  retaining  our  home  markets  for  our  own 


310         TRADE  AND  TRANSPORTATION  BETWEEN 

prodncers  we  have  encouraged  the  construction  of  manufactories  on  so  large  a  scale 
as  to  secure  a  thorough  division  of  lahor,  resulting  in  a  low  cost  of  production  and  a 
high  grade  of  workmanship.  By  increasing  the  productiveness  of  labor  we  have  se- 
cured to  the  skilled  artisan  a  higher  average  rate  of  wages  than  is  paid  in  any  other 
country  in  the  world.  By  shutting  out  foreign  competition  we  have  secured  the 
erection  of  many  large  manufactories  in  every  class,  and  so  have  protected  the  con- 
Bumer  hy  active  competition  among  home  producers. 

*  •  »  *  •  •  * 

We  have  about  mastered  our  home  market.  We  are  now  ready  to  enter  foreign 
markets.  Let  us  begin  with  South  America;  give  our  manufacturers  direct,  rapid, 
frequent,  regular,  and  permanent  access  to  foreign  markets,  and  we  shall  benefit  our 
artisans  by  increasing  the  demand  for  labor.  We  shall  benefit  our  consumers  by  less- 
ening the  cost  of  production.  We  shall  benefit  our  shipping  interests  by  increasing 
our  foreign  trade.  The  value  of  the  South  American  trade  now  and  throughout  the 
long  future  can  hardly  be  overestimated. 

COARSE  WOOL  NOT   GROWN  IN  THE  UNITED  STATES. 

In  an  article  on  "The  Development  of  Wool  Manufactures,"  written 
by  Mr.  George  William  Bond,  of  Boston,  and  published  by  the  Treasury 
Department  in  1887  as  part  of  a  special  report  on  wool  and  manufact- 
ures of  wool,  he  says.  In  reply  to  the  question  whether  any  wool  is  im- 
ported which  we  can  not  produce  in  this  country: 

There  are  none  of  the  third-class  wools  that  can  be  grown  in  this  country  to  ad- 
vantage. Most  of  them  are  from  races  adapted  to  entirely  different  climate  and  cir- 
cumstances, whose  yield  of  wool  is  so  small  that  it  would  not  pay  for  half  their  keep- 
ing. We  could,  I  think,  grow  much  more  of  the  second-class  wool  than  we  do,  because 
such  wool  is  secondary  in  value,  as  the  sheep  could  be  raised  profitably  for  mutton. 
This  first-class  mutton,  if  abundantly  grown,  would  soon  be  appreciated  and  find  a 
well-paying  market  at  home  and  abroad. 

It  is  more  difficult  to  explain,  so  as  to  be  readily  understood,  why  we  can  not  pro- 
duce .any  particular  grades  of  first-class  wools.  AVo  may  grow  wool  in  some  places 
equally  fine  and  apparently  as  good  in  other  respects  as  wools  that  are  imported,  but 
they  may  not  have  the  same  working  qualities.  They  will  not  produce  the  same 
ellect  when  finished.  Such  is  the  influence  of  climate  and  soil  upon  wool  that  no  two 
places  can  grow  wool  exactly  alike.  The  descendants  of  the  same  flock  raised  in 
Vermont  and  Ohio,  or  even  in  Vermont  and  New  Hampshire,  will  not  yield  the 
Bame  wool. 

In  the  special  report  made  on  wool  and  manufactures  of  wool  in  1887, 
by  tlie  Treasury  Department,  are  found  many  interesting  facts  in  rela- 
tion to  the  origin  and  development  of  sheep  husbandry  on  the  Ameri- 
can continents.     From  that  report  the  following  paragraphs  are  taken  : 

The  countries  that  yield  the  largest  surplus  of  wool  for  export  are  Russia,  the  Ar- 
gentine Republic,  South  Africa,  and  Australasia.  Their  capacity  for  supplying  the 
manufactures  of  tlio  world  seems  to  bo  ample.  They  have  all  improved  their  sheep 
by  crossing  with  the  merinos,  and  their  wools,  especially  those  of  Australia  and  the 
Platte  country,  are  among  the  finest  in  the  world.  These  two  last-named  countries  .are 
much  alike  in  their  peculiar  fitness  for  sheep-raising,  and  are  as  yet  not  taxed  to  any- 
thing like  their  capacity.     Australia  .alone  is  as  largo  in  .area  as  the  United  States. 

lu  Australia  the  plains  devoted  to  sheep-raising  are  in  the  hands  of  comparatively 
a  few,  who  have  perjietual  leases  of  immense  tracts  of  Government  lands  at  low 
r.ates.  Some  of  these  tracts  contain  as  much  as  100,000  acres,  so  that  the  country 
bids  fair  to  continue  to  bo  a  sheep-raising  section. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  311 

It  is  idle  to  talk  about  raising  sbcep  in  Europe  or  this  country  to  compete  with 
South  Africa,  the  Platte  country,  or  Australasia.  Oursheep-larming  must  eventually 
be  confined  to  small  flocks  of  improved  breeds,  raised  on  farms  where  they  require 
little  or  no  extra  labor.  It  has  already  come  to  this  in  Europe,  and  in  the  Eastern 
and  Middle  States,  where  lands  are  valuable,  and  will  finally  prevail  in  the  West,  as 
the  largo  ranches  are  divided  up  and  settled. 

The  conditions  are  entirely  different  in  South  Africa,  Australia,  and  South  America, 
where  laborers  are,  at  best,  semi-barbarians  or  peons,  and  the  immense  plains  of  cheap 
lands  and  torrid  climaie  seem  better  adapted  to  sheep-raising'  than  other  industries. 


312         TRADE  AND  THANSPORTATION  BETWEEN 


IV. 

CREDIT  SYSTEMS  IN  SPANISH  AMERICA. 


By  John  M.  Carson,  late  Chrk  Committee  on  Wai/sand  Means,  House  of  Representatives. 


A  sound  system  of  credit  is  not  only  necessary  to  a  bealthful  progress 
of  business  but  stimulates  existing  and  leads  to  the  establish ment  of 
new  enterprises.  Money  is  the  medium  to  facilitate  and  effect  ex- 
changes, but  even  were  there  sufficient  money  to  transact  the  business 
of  the  world  credit  would  still  be  a  necessity.  If  credit  be  necessary 
to  transact  business  between  individuals  of  the  same  country  it  is  a 
greater  necessity  to  transact  business  between  individuals  residing  in 
different  countries  and  at  remote  distances,  and  the  duration  of  the 
credit  depends  largely  upon  the  distance  that  exists  between  the  seller 
in  one  country  aiul  the  purchaser  in  another.  A  system  of  credit,  so 
essential  to  the  siitisfactory  and  healthful  conduct  of  business  in  the 
older  countries,  with  large  population,  thorough  develoi)ment,  abun- 
dant capital,  and  means  of  rapid  communication,  is  absolutely  necessary 
in  a  new  country  without  tliese  advantages  and  auxiliaries. 

A  REQUIREMENT  OF  THE  TRADE. 

At  this  time  the  manufacturers  and  merchants  of  the  United  States 
ar<?  looking  to  South  America  for  nmrkets  in  which  to  dispose  of  their 
sur])lus  ])roducts.  One  of  the  most  apparent  obstacles  that  present* 
itself  is  not  that  the  business  men  of  South  America  recpiire  credit,  but 
that  the  duration  of  the  credit  rcquiriHl  is  beyond  that  usually  extended 
to  i)urchasers  in  the  United  States.  While  it  is  true  that  longer  credits 
are  re(piired  in  South  America  than  are  required  and  grant<Ml  in  com- 
mercial transactions  between  business  nu^n  of  Ihe  United  States,  it 
should  not  be  forgotten  that  certain  conditions  attach  to  trade  with 
South  America  that  make  long  credits  a  necessity. 

The  merchant  in  the  United  States  who  purchases  from  the  home 
manufacturer,  or  even  imports  from  Europe,  on  thirty  or  ninety  days' 
credit,  as  a  rule  disjioses  of  his  goods  in  whole  or  in  part  and  receives 


THE    UNITED    STATES    AND    LATIN    AMERICA.  313 

payment  for  them  before  tlie  expiration  of  the  usual  credit  period  and 
in  time  to  discharge  his  obligation  to  those  from  whom  he  purchased. 
In  the  case  of  the  South  American  merchant,  however,  ninety  days,  and 
sometimes  a  longer  period,  must  elapse  before  he  even  obtains  the  mer- 
chandise, so  that  the  ordinary  credit  which  i)revail8  in  the  United 
States  is  of  no  service  whatever  to  him. 

SYSTEMS  OF   CREDIT   IN   EUROPE. 

From  many  years  of  experience  the  manufacturers  of  Europe  have 
become  thoroughly  acquainted  not  only  with  the  markets  and  people  ot 
Central  and  South  America,  but  with  the  personal  integrity  and  com- 
mercial standing  of  the  merchants  of  those  countries,  and  their  methods 
of  doing  business.  Similar  knowledge  on  the  part  of  the  manufact- 
urers and  merchants  of  the  United  States  would  result  in  a  rapid  ex- 
tension of  trade  between  the  American  continents.  The  fact  that 
Europeans  are  striving  so  hard  to  prevent  the  entrance  of  United  States 
manufactured  products,  and  are  laboring  so  incessantly  to  extend  their 
trade  with  Spanish  America,  is  a  certain  indication  of  good  profits  and 
evidence  of  the  great  value  of  the  trade  with  Spanish  American  coun- 
tries. The  extension  of  the  same  credit  to  Central  and  South  America, 
on  the  part  of  United  States  merchants,  that  is  now  extended  by  those 
of  Europe  is  a  condition-precedent  to  the  successful  development  of 
trade  between  those  countries  and  the  United  States. 

STEAM-SniP  FACILITIES  NECESSARY. 

More  rapid  and  certain  communication  by  steam  ships  than  now  exists 
would  do  much  to  shorten  credit,  but  until  this  can  be  secured  United 
States  merchants  should  recognize  the  prevailing  methods  of  conduct- 
ing business  by  those  of  Spanish  America,  and  be  prepared  to  extend 
the  same  facilities  as  Europeans  if  they  would  secure  a  firm  footing  in 
the  markets  of  those  countries.  The  merchants  of  Europe  do  not  pre- 
tend to  do  business  with  Spanish  America  upon  the  same  lines  that  are 
followed  in  dealing  with  their  own  people  or  with  those  of  the  United 
States.  They  not  only  adapt  themselves  to  the  methods  that  obtain, 
but  carefully  study  the  wants  and  desires  of  the  peo^ile,  consult  their 
tastes,  and  flatter  their  prejudices. 

In  short,  they  manufacture  goods  specially  for  South  American  mar- 
kets, and  conduct  the  business  according  to  South  American  methods. 
In  this  they  have  the  active  assistance  of  bankers  who  devote  special 
attention  to  South  American  trade.  For  instance,  a  merchant  in  Eng- 
land receives  orders  from  one  or  more  South  American  merchants  ag- 
gregating a  large  sum. 

HOW  IT  IS    DONE  IN  ENGLAND. 

The  English  merchant  presents  these  orders  to  his  bank,  to  whom  as 
a  rule  the  financial  standing  and  business  integrity  of  most  of  the 


314  TRADE    AND    TRANSPORTATION    BETWEEN 

Sontli  American  importers  are  known,  and  arranges  for  the  bank  to 
carry  tlie  credit,  the  bank  obtaining,  in  addition  to  the  interest  paid  by 
tbe  debtor-merchants  in  Soutli  America,  a  percentage  of  the  profits  of 
the  English  merchant  derived  from  the  sale  of  the  merchandise.  In 
this  way  the  bank  receives  a  profitable  retnrn  upon  its  loan,  the  trade 
of  England  is  promoted,  and  the  South  American  merchants  obtain  a 
credit  which  is  at  once  a  business  convenience  and  an  addition  to  their 
capital. 

J\roney  in  the  United  States  is  plentiful,  and  is  eagerly  seeking  safe 
and  profitable  investment.  The  commercial  honor  of  the  leading  mer- 
chant importers  of  Spanish  America  is  unquestionable.  They  are  not 
only  willing,  but  desirous  of  trading  with  the  United  States,  and  are 
prevented  from  so  doing  solely  because  the  conditions  repel  them.  If 
the  manufacturers  of  the  United  States  will  manufacture  the  goods  and 
wares  required  by  the  peoj)le  of  Spanish  America;  if  the  merchants  of 
the  United  States  will  pack  them  in  such  shapes  and  forms  as  are 
necessary  to  insure  easy  transportation  into  the  interior  of  the  country, 
and  will  extend  the  measure  of  credit  essential  to  the  successful  con- 
duct of  business  in  Central  and  South  America,  the  markets  of  those 
countries  will  be  opened  to  them  and  a  large  volume  of  commerce  will 
soon  be  passing  between  North  and  South  America. 

THE  THREE  ESSENTIALS  FOR   INCREASED   TRADE. 

The  three  essentials  to  the  establishment  and  successful  maintenance 
of  commerce  between  the  two  American  continents  are  goods  manu- 
factured specially  for  Spanish-American  countries,  rapid  and  regular 
steam-ship  lines,  and  the  establishment  of  a  credit  system  to  meet  the 
necessities  of  those  new  and  enterprising  countries. 

In  connection  with  this  general  subject,  Hon.  E.  L.  Baker,  United 
States  Consul  at  Buenos  Ayres,  wrote  an  able  and  comprehensive  paper 
to  the  State  Department.  In  this  communication  Mr.  Baker  described 
the  Argentine  Kepublic,  but  very  much  of  what  he  wrote  is  applicable 
to  Spanish-American  countries  generally. 

The  Argentine  Republic  [Haid  Mr.  Baker]  is  young  in  years  and  greatly  wanting  in 
active  capital.  With  untold  flocks  and  herds  feeding  on  spontaneous  pasturage  to 
the  very  confines  of  Patagonia,  the  product  of  which  must  find  a  market  .abroad; 
with  a  soil  unsurpassed  for  agricultural  purposes,  which  yet  awaits  the  plow  of  tho 
husbandman;  with  vast  mineral  resources  in  the  interior  provinces,  which  can  not 
be  reached  without  expensive  machinery;  with  growing  industries  of  sugar,  wine, 
coffee,  silk,  etc.,  all  requiring  tho  expenditure  of  capital,  .and  with  a  sparse  popula- 
tion possessing  but  little  wcaltli,  scattered  over  an  immense  extent  of  territory,  it  is 
impossible  in  this  country  to  move  forward  in  any  department  of  trade,  labor,  or 
industry  without  llie  intervention  of  credit.  Without  the  stimulus  thus  received, 
its  political  advancement  and  national  doveloi>meut  would  be  difficult,  if  not,  indeed, 
almost  hopeless. 

Several  years  ago  the  Department  of  State  sent  out  inquiries  to  the 
American  ministers  and  consuls  touching  the  credit  and  trade  systems 


THE  unitp:d  states  A\i>  i;Aii;;  a.mkumca.  315 

prevailing  in  the  various  countries  of  the  world.  From  the  replies 
received  to  those  inquiries  the  following  condensation  of  the  credit  sys- 
tem in  Spanish  America  is  made: 

MEXICO. 

Nearly  all  the  great  mercantile  houses  in  Mexico  City  and  State  sell 
largely  on  credits  of  froui  four,  six,  to  eight  months,  and  often  for  longer 
periods,  and  even  the  small  dealers,  venders  of  trilles,  and  hucksters  in 
articles  of  common  use  and  every-day  necessity,  whose  business  is  usually 
supposed  to  require  ready  money,  are  here  more  facile  in  regard  to 
credits  than  in  most  other  commercial  communities.  It  is  estimated 
that  the  business  of  the  country  is  about  equally  divided  between  cash 
and  credit. 

Bankruptcy  is  very  rare.  It  is  policy  of  the  merchants  to  give  to  a 
debtor  an  extension  of  time,  when  asked  for  and  the  request  be  justi- 
fied, and  not  to  push  him  to  bankruptcy,  as  in  the  latter  case,  the  tri- 
bunals intervening  and  causing  heavy  expenseSj  utter  ruin  and  loss  are 
sure. 

YUCATAN. 

Yucatan  is  preeminently  a  credit  country,  cash  transactions  being 
extremely  rare.  This  statement  ai^plies  to  all  business,  great  or  small, 
almost  without  exception.  In  all  and  every  condition  of  life,  in  all  and 
every  business,  the  credit  system  is  rampant ;  it  has  always  been  so ; 
it  seems  as  though  it  always  would  be  so.  As  a  rule,  interest  is  not 
demanded  on  time  accounts.  Goods  are  sold  for  a  certain  price,  which 
may,  at  option,  be  paid  "  cash  down,"  or  in  a  few  monthly  installments, 
or  at  the  expiration  of  a  short,  fixed  period,  without  interest.  The  num- 
ber of  monthly  installments  and  the  duration  of  the  last-mentioned 
period  naturally  vary  with  the  amount  of  goods  sold  and  the  amount  of 
confidence  the  seller  has  in  the  purchaser.  Should  monthly  payment 
not  be  promptly  made,  interest  is  then  usually  charged  at  a  rate  stipu- 
lated in  the  document  drawn  up  at  time  of  sale. 

COSTA  RICA. 

Between  dealers  and  importers  the  credit  system  extends  to  about 
one-half  the  volume  of  business.  Cash  buyers  have  an  advantage  of 
from  5  to  10  per  cent. 

HONDURAS. 

Credit  always  stimulates  commercial  transactions,  and  for  this  reason 
the  merchants  of  this  llei^ublic  provide  themselves  from  Europe  mostly, 
where  they  receive  a  credit  from  six  to  twelve  months,  and  only  buy 
from  the  United  States  those  articles  which  bear  very  high  prices  in 
Europe,  as  flour,  grain,  and  a  few  other  kinds  of  merchandise.  The 
extent  of  credit  is  equal  to  about  two-thirds  of  the  commercial  business. 


316         TRADE  AND  TRANSPOUTATION  RETWEEN 

In  a  recent  letter  to  the  State  Department  Consul  Herring  furnishes 
from  Tegucijialpa  some  interesting  facts  bearing  upon  the  commercial 
methods  of  Central  America. 

In  llonduras,  as  in  most  places  in  Central  America,  a  lonjj  timo  must  necessarily 
iutervetie  between  the  sending  of  an  order  for  p;oods  and  their  receipt.  If  they  arrrive 
at  the  port  in  tlic  wet  season,  they  are  likely  to  lie  there  for  weeks,  perhaps  even 
Diontlis,  before  nmlcs  can  be  obtained  to  carry  them  to  the  merchants  in  the  interior, 
es})ecialiy  if  the  packages  are  of  bulky,  heavy,  or  inconvenient  shape.  Instances 
have  occurred  where  conHignnicnts  of  goods  of  awkward  shape  have  lain  in  Ama- 
pala  more  than  a  year  awaiting  trausjiortation.  Six  months  may  probably  elapse 
between  the  mailing  of  an  order  for  goods  from  New  York  and  their  receipt,  say  at 
Jnf  icalpa,  for  instance.  These  facts  servo  to  sliow  why  mercliants  here  and  inother 
portions  of  Central  America  require  long  credits.  These  credits  they  get  from  En- 
glish, German,  and  French  houses;  but  they  find  American  houses  less  willing  to 
give  equally  favorable  terms.  If  a  merchant  here  fails  to  remit  a  payment  when 
due,  it  may  require  three  or  four  months  of  correspondence  for  the  foreign  house 
to  ascertain  the  reason.  It  may  be  on  account  of  some  delay,  missendiug,  miscar- 
rying, or  unknawn  stoppage  in  transit  of  the  natural  products  of  this  country, 
which  are  often  sent  in  exchange  for  foreign  goods.  C(mseqnently  the  interchange 
of  business  or  commodities  is  necessarily  very  slow.  Resort  to  the  courts  for  com- 
mercial settlements  is  rare,  and  bankruptcies  seldom  occur.  Some  English  houses 
charge  5  per  cent,  per  annum  interest  on  accounts  until  they  mature,  and  then,  with- 
out further  notice  to  or  from  the  custonior,  extend  the  credit  three  months  and  charge 
interest  for  that  three  months  at  the  rate  of  7i  per  cent,  per  annum,  and  very  often 
extend  the  credit  a  year.  Merchants  here  object  to  the  insui-ance  in  the  United 
States  as  being  higher  than  in  Europe,  with  no  corresponding  greater  risk;  in  fact, 
less  risk,  thetlistaace  and  time  being  shorter. 

Several  years  ago  Minister  Logan  furnished  valuable  information  on 
the  business  methods  of  Central  America.  What  he  said  about  Central 
America  in  this  particular  applies  with  more  or  less  accuracy  to  other 
Spanish- American  countries.     Minister  Logan  said: 

The  coffee  of  Central  America,  its  great  staple,  is  largely  sold  in  European  markets; 
hence  the  credits  of  the  sePers  are  mostly  in  those  countries.  This  being  the  case,  it 
results  almost  as  an  unavoidable  conserpience  that  the  purchases  of  the  nuirchants  are 
made  there  of  all  articles  which  do  not  by  reason  of  vastly  superior  quality  or  lower 
price  compel  a  ])urchase  elsewhere.  The  circumstance  named  is  so  powerful  in  its 
effects,  however,  as  to  overcome  all  ordinary  advantages  in  other  directions.  Let  me 
illustrate  the  point  by  citing  the  case  of  Ciiili.  The  great  exi)orts  of  that  country 
are  copper,  silver,  and  wheat.  Thirty  years  ago  the  United  States  bought  largely  of 
these  articles;  and  during  the  early  settlement  of  California,  Chili  exclusively  sup- 
plied the  flour  consumed  by  the  pioneer  population  of  our  far  off  Pacific  coast.  Then 
the  credits  of  Chili  were  in  onr  country,  and  the  logical  consequence  was  that  we 
enjoyed  a  large  trade  with  that  republic,  her  imports  being  almost  exclusively  from 
the  United  States.  The  development  of  the  copi)er  of  the  Lake  Superior  region  sup- 
plied our  own  demands  for  that  article,  the  enormous  yield  of  our  silver  districts 
closed  the  market  in  that  direction,  while  our  wheat  production  has  become  one  of 
the  chief  reliances  of  those  countries  compelled  to  look  to  other  nations  for  their 
supply  of  that  staple, 

COLOMBIA. 

English  merchants  have  the  principal  trade  of  Colombia,  which  they 
stimulate  by  giving  credits  from  six  to  nine  montlis,  charging  only  5 
and  G  per  cent,  interest  and  3  per  cent,  commissions.     Gash  buyera 


THE    UNITED    STATES    AND    LATIN    AMERICA.  317 

hav«  ail  advantage  of  from  5  to  10  per  cent.,  though  no  interest  is 
charged  on  time  accounts. 

VENEZUELA. 

The  bulk  of  all  sales  are  made  on  a  credit  of  from  four  to  twelve 
months.  Cash  sales  are  very  few.  Although  interest  is  not  demanded 
on  time  accounts,  cash  buyers  have  great  advantages  over  those  that 
buy  on  credit.  Merchants  allow  12^  l^ev  cent,  discount  from  time  prices. 
All  imported  goods  are  sold  on  time. 

BRAZIL. 

At  least  three-fourths  of  the  volume  of  business  will  be  on  credit. 
With  a  capital  of  $20,000  it  is  usual  to  be  owing  about  $100,000,  or  in 
that  proportion.  As  a  rule  the  people  buy  on  credit.  In  retail  trade 
those  who  pay  cash  buy  at  cheaper  rates  than  those  who  are  known  to 
ask  credit.  In  wholesale  trade  the  cash  buyer  gains  a  very  consider- 
able advantage.  In  the  dry- goods  trade,  for  example,  a  credit  of  twelve 
months  is  granted;  but  if  the  purchaser  pays  cash  he  will  get  12  to  14 
per  cent,  discount.  Wine  and  olive  oil  are  sold  at  ten  mouths'  credit, 
or  10  per  cent,  discount  for  cash;  beer  at  eight  months'  credit,  or  7  i)er 
cent,  discount  for  cash ;  and  the  same  in  respect  to  provisions. 

Interest  is  demanded  and  obtained  by  the  importer  on  overdue  ac- 
counts, say  at  the  rate  of  9  or  10  per  cent.,  or  1  per  cent,  above  the  rate 
of  the  banks.  Wholesale  dealers  who  sell  to  the  interior'often  try  to 
get  interest,  but  seldom  succeed,  and  are  only  too  glad  to  get  paid  with- 
out interest.  A  retail  dealer  would  be  likely  to  charge  interest  after 
six  months. 

Generally  all  products  of  the  country  are  sold  for  cash  or  oji  three 
months'  credit.  Coft'ee,  the  leading  product,  is  a  cash  article.  Fresh 
meat,  fresh  fish,  and  mechanical  work  command  cash.  In  imports,  salt, 
lumber,  petroleum,  copper,  lead,  and  codfish  are  cash  articles.  Sixty 
days'  credit  is  sometimes  given  for  iron,  otherwise  it  brings  cash.  Flour 
is  sold  at  six  months'  credit,  or  cash  at  6  per  cent,  discount.  All  goods 
except  those  manufactured  are  sold  on  acceptances  in  case  of  credit. 
The  banks  advance  money  on  signed  accounts,  but  do  not  discount 
them.  There  appears  to  be  a  tendency  to  increase  the  list  of  cash 
articles. 

URUGUAY. 

•  In  Montevideo  credit  is  the  one  and  indispensable  element  of  trade, 
which  may  be  said  to  be  almost  exclusively  carried  on  by  the  capital  of 
foreigners.  The  local  dealers  will  only  buy  at  five  and  six  months'  credit, 
and  very  seldom  redeem  their  promissories  by  cash  discount.  The  cause 
and  origin  of  such  long  credit  may  be  explained  by  the  long  time  re- 
quired for  the  goods  bought  in  this  city  to  reach  the  centers  of  distribu- 
tion in  the  camps  or  country  towns,  and  the  long  time  the  country  dealer 
has  to  wait  ere  he  can  dispose  of  them  and  obtain  returns,  and  these  re- 
turns by  barter  as  frequently  as  by  cash. 


318         TRADE  AND  TRANSPORTATION  BETWEEN 

About  one-half  of  the  commercial  biisiuess  of  tlie  coautry  is  done  on 
credit.  Native  products  usually  command  cash.  No  inhjrest  is  charged 
on  time  accounts,  but  interest  is  charged  at  from  6  to  9  per  cent,  if  the 
credit  is  exceeded.  Tbe  banks  discount  the  promissory  notes  of  the 
dealers  and  collect  them  when  due;  and  any  inability  or  hesitancy  to 
pay  on  the  part  of  the  purchaser  or  dealer  who  signs  it  would  severely 
wound  him  in  credit  and  reputation. 

ARGENTINE  REPUBLIC. 

As  a  rule,  business  is  conducted  on  credit;  about  seven-eighths  of  the 
volume  of  wholesale  and  retail  business  is  thus  transacted.  Cash  buy- 
ers have  a  reduction  in  prices  equivalent  to  12  per  cent,  per  annum. 
In  tbe  grocery  and  comestible  trade  the  credit  is  four  months,  with  4 
l)cr  cent,  discount  for  cash.  In  the  dry-goods  trade  the  credit  is  five 
months  from  the  end  of  the  month,  with  5  per  cent,  discount  lor  cash 
payments.  If  a  merchant,  however,  demands  cash,  he  will  have  to 
allow  even  more,  or  be  cut  off  from  many  buyers. 

Interest  on  time  accounts  is  often  demanded  but  seldom  paid.  Most 
invoices  have  printed  on  them  that  at  the  expiration  of  a  certain  time 
interest  will  be  charged,  but  in  the  great  majority  of  cases  it  is  not  en- 
forced. If  legal  proceedings  are  taken  for  the  recovery  of  an  account, 
only  7  per  cent,  per  annum  from  the  date  of  the  action  is  recoverable; 
but  as  the  costs  of  the  suit  (left  to  the  discretion  of  the  judge)  are  in- 
variably more  than  the  interest  claimed,  the  attempt  to  collect  interest 
by  law  is  seldom  made.  A  merchant,  in  explanation  of  the  fact  that 
interest  is  not  paid  on  time  accounts,  says  that  "  as  a  general  rule  the 
price  of  the  articles  sold  is  fixed  on  a  basis  of  five  to  six  months'  credit, 
and  of  course  the  interest  is  included  in  the  price  itself."  In  the  retail 
trade  no  interest  is  ever  demanded. 

Articles  of  export  are  alone  sold  for  cash.  Articles  manufactured  in 
the  country  are  comparatively  lew,  and,  as  they  enter  into  competition 
with  the  imported  article  of  the  same  kind,  of  course  they  are  subject 
to  the  same  regulations  in  regard  to  credit.  American  manufacturers 
have,  in  manj'  cases,  declined  to  make  sales  to  the  merchants  of  this 
country  unless  the  price  was  de[)0sited  before  the  shipment,  while  others 
demand  to  draw  against  the  goods,  payable  on  arrival  of  cargo;  but  the 
system  of  credits  in  European  countries  is  so  liberal  and  so  universal 
that  the  United  States,  except  in  special  cases,  receives  orders  only  for 
what  can  not  be  procured  elsewhere. 

PERU. 

Merchants  buy  on  three  and  six  months'  credit.  Tradesmen  give  no 
credit  beyond  thirty  days.  Beyond  that  period  interest  is  charged  at 
the  rate  of  1  per  cent,  a  mouth. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  319 

GUBA. 

The  bulk  of  the  busiuess  is  couducted  on  credit.  The  exporter  of 
sugars  and  molasses,  whose  busiuess  reaches  a  volume  during  the  j'ear 
of  many  millions  of  dollars,  .may  have  a  capital  of  from  $25,000  to 
$50,000,  but  he  relies  on  credits  generously  granted  him  by  bankers  of 
the  United  States  and  Europe. 

The  wholesale  provision  dealer  purchases  his  sui^plies  at  three,  four, 
six,  and  sometimes  eight  months'  time.  He  in  turn  sells  to  the  planter 
on  credit,  formerly  on  twelve  months'  time,  but  now  rarely  more  than 
one  to  three  months  are  granted.  The  planter,  it  is  true,  sells  his  prod- 
uce for  cash,  but  as  his  crop  is  mortgaged,  practically  the  proceeds 
pass  into  the  hands  of  the  factors  immediately.  If  credits  were  all  with- 
drawn it  would  be  Impossible  to  carry  on  any  trade  in  the  island.  The 
only  trade  based  wholly  on  cash  is  the  retail  grocery  trade. 

The  basis  on  which  all  trade  rests  is  the  credit  system.  It  is  a  long 
chain  which  extends  from  the  producer  abroad  or  at  home  through  num- 
berless middlemen,  link  by  link,  to  the  consumer,  who  is  perhaps  the 
only  one  who  can  or  is  expected  to  pay  cash  for  what  he  buys,  and  even 
n  his  case  it  is  usual  only  when  he  is  a  retail  purchaser. 

Cash  buyers  have  some  advantages  in  prices  which  are  usually  equal 
to  the  iuterest  for  the  time  a  credit  is  granted.  Interest  is  not  usually 
demanded  on  time  accounts.  Liquidations  are  usually  made  on  May  1. 
The  account  will  embrace  purchases  made  during  the  previous  twelve 
months.  Although  cash  payment  on  May  1  is  desired  and  asked  for,  it 
is  rarely  made.  Instead  of  this,  the  planter  giv^es  the  dealer  one  or 
more  notes,  payable  in  February,  March,  or  April  following,  with  in- 
terest (usually  12  per  cent.)  added. 

PORTO  RICO. 

At  least  75  per  cent,  of  the  business  is  done  on  credit.  Cash  buyers 
always  purchase  at  least  5  per  cent,  cheaper  than  those  who  purchase 
on  credit.    Interest  is  seldom  collected. 

HAYTI. 

Credit  is  essential  to  the  existence  of  trade.  The  system  of  credit  is  so 
deeply  rooted  in  this  community  that  merchants  sell  to  retailers  princi- 
pally on  credit,  and  these  in  turn  sell  to  most  of  their  customers  on  similar 
terms,  and  this  credit  system  is  restricted  by  neither  law  nor  regulations. 
It  may  be  said  that  75  per  cent,  of  the  total  amount  of  merchandise  dis- 
posed of  is  done  on  credit. 


IlIO  TKALI:    AM)    TlvANyroK'J'ATION    i;i/J\VEEN 


V. 

COINAGE  AND  THE  PRECIOUS  METALS. 


By  John  M.  Carson,  Late  Clerk  Committee  on  Ways  and  Means,  House  of  Eepresenta' 

tives. 


The  standard  coins  of  the  American  continents  are  as  nuruorons  as  the 
countries  which  are  embraced,  and  each  country  has  its  own  standard 
of  weight  and  fineness.  With  a  i^eople  having  no  commerce  with  neigh- 
boring nations,  it  matters  little  what  may  be  the  form  and  value  of  its 
currency,  but  in  proportion  with  the  extension  of  a  nation's  commerce 
will  its  people  suffer  loss  and  inconvenience  through  a  currency  estab- 
lished to  meet  local  exigencies  or  to  serve  local  convenience.  Tliis  mul- 
tiform metallic  currency  of  the  American  countries  is  not  only  a  hin- 
drance to  commerce,  but  entails  loss  to  consumers  of  merchandise  and 
inconvenience  to  merchants  by  reason  of  the  necessity  for  computations 
and  the  employment  of  agents  and  brokers  to  make  the  exchanges. 

A  coinage  system  of  uniform  value  and  designation  would  be  a  great 
help  to  the  commerce  of  the  world  and  a  large  saving  to  the  people. 
Such  a  system  is  not  impracticable  and  may  be  adopted  before  many 
years.  But  there  is  no  reason  why  a  uniform  system  of  values  and  des- 
ignations should  not  be  at  once  adopted  for  use  among  the  nations  of 
America.  The  necessities  of  commerce,  which  is  being  rapidly  devel- 
oi)ed  between  American  countries,  and  the  convenience  of  the  ])eo])le, 
who  are  becoming  more  intimate,  alike  require  the  removal  of  the  dif- 
ferences existing  between  the  monetary  units  of  their  respective  coun- 
tries. This  varied  currency  is  one  of  the  greatest  barriers  to  the  promo- 
tion of  commerce  between  the  North  and  South  American  continents. 
With  a  monetary  unit  common  to  American  countries,  and  the  es- 
tablishment of  more  frequent  and  rapid  communication  between  them, 
the  services  of  brokers  and  money-cliangers  would  be  no  longer  required 
by  merchants,  and  the  postal  money-order  system  would  become  as  ac- 
cessible to  the  people  of  North  and  South  America  as  it  now  is  to  those 
of  the  United  States  and  the  United  Kingdom. 


THE    UNITP:1)    states    and    latin    AMERICA.  321 

AN    INTERNATIONAL   SILVER    COIN. 

It  is,  i>erliaps,  too  early  to  attempt  so  radical  a  change  as  would  be 
involved  in  the  sweeping  away  of  existing  forms  of  currency  and  the 
substitution  of  new  forms.  The  people  should  be  prepared  by  educa- 
tion for  so  thorough  a  revolution  in  customs  that  have  become  rooted  by 
generations  of  usage.  But  the  merchants  and  business  men  of  the  two 
continents  have  long  since  recognized  the  necessity  for  a  uniform  stand- 
ard coin  as  the  basis  of  business  transactions  between  the  several 
nationalities  of  America,  and  are  not  only  prepared  for  its  immediate 
adoption,  but  are  earnestly  urging  it  upon  the  attention  of  their  respect- 
ive representatives.  The  necessity  for  the  introduction  of  a  uniform 
unit  of  value  or  trade  dollar  being  apparent,  it  is  for  the  statesmen  of 
America  to  devise  the  methods  and  provide  the  necessary  treaties  and 
legislation  to  secure  its  early  establishment.  Hon.  Conrad  N.  Jordan, 
late  Treasurer  of  the  United  States,  and  now  president  of  the  Western 
National  Bank  of  New  York,  has  given  this  subject  considerable  study, 
and  in  a  paper  jjrepared  for  the  attention  of  the  Congress  says  : 

I  propose  an  internatioual  coinage,  and  present  the  following  methods  of  bringing 
such  an  agreement  about.  It  ia  folly  to  ask  England  to  accept  international  coinage, 
with  the  knowledge  that  by  merely  agreeing  to  go  into  a  conference  to  bo  held  for 
that  purpose  such  action  would  put  up  silver  from  5d.  to  lOd.  per  ounce,  and  thus  com- 
pel her  to  deplete  an  already  i)artially  exhausted  stock  of  gold  in  making  the  pur- 
chases which  such  an  operation  would  require.  Instead  of  asking  England  to  commit 
this  absurdity  why  should  not  the  United  States  otter  to  sell  England  £10,000,000  at 
the  average  price  paid  by  the  United  States,  which  is,  say,  48^^.,  giving  an  option 
for  a  further  purchase  of,  say,  £10,000,000,  at,  say,  bOd.,  contract  to  run,  say,  three  to  five 
or  more  years,  England  to  pay  2  per  cent,  per  annum  on  the  credit,  which  can  be  re- 
newable, the  United  States  only  to  draw  when  exchange  is  at  4.89,  or  shipping  point? 
Thus  England  will  practically  pay  for  the  silver  purchase  in  goods  or  securities  re- 
turned from  the  other  side.  England  will  purchase  with  the  knowledge  that  she 
will  not  be  required  to  pay  except  as  above,  or  earlier,  at  her  option,  and  as  only 
about  33  per  cent,  can  be  put — as  I  estiiuiite — in  circulation  in  subsidiary  coin  in  one 
year,  it  will  need  three  years  to  complete  the  tirst  contract.  The  United  States  should 
also  agree  to  purchase  an  amount  equal  to  its  sale,  if  made,  at  not  to  exceed  a  like 
price  from  its  home  producers,  thus  preventing  the  English  silver  market  from  being 
swamped  by  excessive  importations,  which  otherwise  might  be  induced  by  the  rise 
in  price. 

A  METHOD  SUGGESTED. 

The  purchase  made,  an  international  agreement  as  to  coinage  being  assumed  as  en- 
tered into,  it  remains  to  provide  a  method  to  bring  this  about.  Let  us  suppose  inter- 
national commissioners  to  be  apjjoiuled  for  the  purpose  of  supervising  at  the  places 
agreed  upon  as  points  of  dei)Osit,  the  deposits  to  be  made  under  the  following  arrange- 
ment: Any  person  or  corporation  can  deposit,  say  at  the  cities  of  Mexico,  Vera  Cruz, 
Rio  Janeiro,  Buenos  Ayres,  Lima,  Valparaiso,  San  Francisco,  and  New  York.  (This 
list  to  be  extended  by  the  proposed  conlVrence  to  all  points  where  silver  can  be  col- 
lected and  shipped  at  the  lowest  cost  in  the  respective  countries.)  Silver  exceeding, 
say  800  line  (minimum  fineness  to  be  agreed  upon);  certificates  to  be  issued  by  the 
respective  governments  under  their  guaranties  as  to  fineness  and  weight,  and  under 
au  inspection  by  three  commissioners  (the  consuls  could  act  as  such  commissioners), 
and  under  inteniational  guaranty  as  to  the  safety  aixl  security  of  such  deposits; 
eaeh  government  to  be  charged  with,  the  expense  of  silver  moved  by  reason  of  th« 
S.  Ex.  54 21 


322  TRADE    AND    TRANSPORTATION    IJHTWERN 

agreement.  The  certificates  to  be  issued  in  equivalents  of  1,000  ounces  fine,  and  in 
sums  of,  say  10,  50,  100,  500,  and  1,000  ounces.  These  certificates  to  be  received  by 
the  separate  Governuicnts  in  payment  of  customs  dues  at,  say  not  exceeding  55  pence 
per  ounce,  1,000  fine,  or  such  price  as  may  be  aj^reed  upon ;  but  to  be  received  at  the 
average  current  price  less  than  55(i.  of  the  previous  month,  as  now  done  in  Austria, 
less  I  or  1  per  cent.,  as  the  case  may  be  or  need,  in  order  to  pay  expenses  of  issue  of 
certificates,  the  commission  of  inspectors,  etc.  The  respective  States  may  pay  out  or 
sell  such  certificates  at  the  average  current  rate,  but  are  not  compelled  so  to  do.  The 
merchants  can,  however,  settle  their  own  debts,  at  their  option  or  agreement,  or  make 
sales  and  payments  payable  in  these  certificates,  which  contracts  of  sales  and  pay- 
ments are  to  be  recognized  as  valid  and  enforceable  by  law.  The  agreement  to  receive 
such  certificates  to  terminate  ujion  such  notice  by  each  government  party  to  the 
agreement,  as  may  be  agreed  upon. 

THE   EFFECT   OP   SUCH   AN   ARKANGEMENT 

would  be  to  place  in  the  hands  of  the  governments  which  are  parties  thereto  a 
stock  of  silver  that  would  provide  for  an  international  coinage  of  increased  weight ; 
but  in  the  case  of  England,  decreased  fineness,  as  I  should  propose  a  coin  900  fine, 
for  the  reason  that  this  fineness  suffers  least  by  abrasion  ;  440  grains  to  the  dollar, 
900  tine,  or  such  increase  as  may  be  agreed  upon.  The  nickel  currency  to  be  abol- 
ished, and  small  silver  issued  in  its  place.  This  new  coinage  may  be  begun  imme- 
diately, but  should  be  begun  by  parties  agreeing  thereto  say  no  later  than  1895  ;  but 
no  new  coinage  of  the  old  standards  to  be  made.  Until  then,  any  of  the  coinages  to 
be  received  at  the  valuation  to  be  placed  upon  the  respective  existing  coinages 
with  reference  to  the  coming  new  coinage.  The  terms  of  time  of  settlement  to 
be  agreed  upon,  say  five  or  ten  years  (the  latter  being  best,  though  regard  must 
be  had  to  the  amount  accumulated  by  the  signatory  powers  through  their  cus- 
toms or  otherwise),  the  debtor  nations  to  pay  in  silver,  by  weight  and  fineness, 
the  differences  resulting  from  abrasion  or  lack  of  weight  or  fineness.  This  would 
equalize  the  old  coins  with  the  new  coins,  or  a  toleration  allowance  could  be 
made  as  to  abrasion,  each  nation  being  allowed  one-twonty-fifth  of  1  per  cent,  per 
annum,  which  is  as  nearly  as  may  be  the  legitimate  abrasion  which  takes  place  an- 
nually in  silver  coinage  900  fine. 

The  nations  issuing  small  paper  money  would  suffer  the  least  under  this  arrange- 
ment, as  less  small  coinage  would  be  in  circulation  with  them  under  such  conditions. 
Currency  could  be  forbidden  of  less  denomination  than  $5.  Any  excessive  abrasion 
would  be  evidence  of  the  coin  being  unfairly  dealt  with,  and  would  not  bo  allowed 
for. 

The  result  of  the  methods  presented  in  the  latter  part  of  these  suggestions  would 
be,  until  the  matter  was  fairly  understood,  an  accumulation  at  a  few  centers,  of  sil- 
ver certificates;  but  as  soon  as  understood  by  merchants  would  create  a  mercantile 
currency  which  may  be  expanded  at  will  by  the  mercantile  community,  as  represented 
by  its  foreign  merchants.  But  as  soon  as  this  channel  was  filled  the  accumulation  by 
the  respective  Governments  would  begin,  and  a  sufiicient  stock  of  silver  would  be  ob- 
tained without  other  expense  than  the  price  at  which  the  certificates  were  received, 
transportation  and  storage  deducted,  and  out  of  which  the  new  coinage  could  be  cre- 
ated without  any  great  loss  or  expense.  The  further  result  would  be  obtained  by  the 
use  of  the  existing  silver  coinage  of  great  economies  in  making  the  transition  from 
the  one  system  of  coinage  to  the  other. 

Mr.  Jordan  favors  making  the  weight  of  the  proposed  coin  432.10 
grains,  as  that  divides  equally  in  grams,  an  important  point  in  connec- 
tion Aj'ith  the  production  of  sul)si<liary  coins.  Four  hundred  and  forty 
grains  of  silver,  900  fine,  would  give  390  grams  of  pure  silver.  If  made 
400  grains  of  jmre  silver,  this  would  divide  decimally  in  the  best  possi- 
ble way.    The  selection  of  900  fineness  is  because  of  the  fact  that  it  has 


THE    UNITED    STATES    AN'I)    I.A  I'lN    AMERICA. 


323 


been  (leinoiistriited  that  silver  of  tliis  «lej;iee  ol"  liiieiiess  wear.s  better 
as  iiumey  than  it  coined  of  any  other  tinenes.s.  It  has  the  merit,  too, 
of  having;  been  adoi)ted  by  every  nation  except  En;;hind.  The  silver 
of  Enf;land  is  1)25  fine,  bnt  proves  to  be  too  soft,  and  is  snbject  to  greater 
wear  and  tear  than  any  other  silver  coinage. 

ESTIMATE   OF   VALUES   OF   SPANISH-AMERICAN   COINS. 

The  annexed  table  shows  the  monetary'  standard  of  the  several  coun- 
tries named,  the  monetary  unit,  the  character  of  coins,  and  the  equiva- 
lent value  of  the  monetary  unit  in  terms  of  the  gold  dollar  of  the  United 
States.  These  estimates  were  j)re[»ared  by  the  Director  of  the  United 
States  Mint,  are  used  by  the  custom-houses  of  the  United  States,  and  are 
followed  iu  determining  values  of  invoices.  They  are  nuide  annually, 
and  when  ])romulgated  by  the  Secretary  of  the  Treasury,  govern  the  cus- 
toms ollicials  for  the  year. 

Tlie  "standard"  of  a  given  country  is  indicated  as  follows,  namely  : 
Double,  where  its  standard  silver  coins  are  unlimited  legal  tender,  the 
same  as  its  gold  coins;  single  gold  ov single  silver,  as  its  standard  coins 
of  one  or  the  other  metal  are  unlimited  legal  tender.  The  par  of  ex- 
change of  the  monetary  unit  of  a  country  with  a  single  gold,  or  a  double, 
standard  is  fixed  at  the  value  of  the  gold  unit  as  comi)ared  with  the 
United  States  gold  unit.  In  the  case  of  a  country  with  a  single  sdver 
staudard,  the  par  of  exchange  is  computed  at  the  mean  piice  of  silver 
in  the  Loudon  market  for  a  i)eriod  commencing  October  1  and  ending- 
December  24,  1888,  as  per  daily  cable  dispatches  to  the  Uureau  of  the 
Mint. 


Country. 

Standard. 

Monetary  unit. 

C  sX 
2  J,.C  it 

Coins. 

Argentine  Republic. 
Holivia    

Double 

Single  Hilv^r 
Siii<ile  gold  . 

Double 

Double 

Single  silver 

Single  silver 

Double    

Single  silver 
Sint;le  silver 

Single  silver 
Single  silver 
Single  silver 

Single  silver 

$0.  965 

.08 
.540 

.912 

.920 
.C8 

.68 
.965 
.6x 
.7^9 

.68 
.08 
.08 

.136 

Gold :  argentine  (.$4.«24)  .and  i 
argi'utine.  Silver:  peso  and 
divi.siona. 

Silvt  I  :    Boliviano   and   divisions. 

Gold:  5,  10,  and  20  iiiilii  is.  Sil- 
ver: i,  1,  ami  2  ii.ilieis. 

Gold:  r.mudo  (.n.S24i,  doubloon 
($4. .".61),  and  condor  (4;9.12;j). 
Silver:  p«wo  anil  divisions. 

Gold:  doubloon  (.$5,017).  Silver: 
peso. 

(lold  :  condor  ($9,047)  and  dtnxble- 
condor.  Silver:  sucro  and  di- 
visions. 

Silver  :  peso  and  divisions. 

Boliviano   

Milrt-is   of    1,000 
reis. 

Brazil 

Chili 

Cuba 

Kcuadur 

Guat«<raala 

Peso 

Gourde 

Havti  

Uoiiduras 

Mexico 

Pe.so ^ 

Dollar 

Silver  :  divisions  of  peso. 

G(dd  :  dollar  ($0  9f<:i),  2^.  5,  10. 
ana  20  dtjUars.  Silver:  dollar 
(or  jieso)  and  divisions. 

Silver:  pe.so  and  divisions. 

Silver  :  sol  ami  divisions. 

Gold  :  condor  ($9,647)  and  double- 
condor.     Silver:  peso. 

G(dd:  :.,  10.  2(1,  .'".I),  and  100  boli- 
vars.    Sliver :  5  bolivars. 

Nicarasna . 

P.ru..? 

Sol  - 

United  States  of  Co- 

lombia. 
Venezuela 

324  'I'KADH    AND    TK'ANSl'OK' I'A  llON     BKTWKKN 

KELATIVE   WEIGHT    OF    SILVER   COIN. 

Tlie  number  of  jiraius  of  pure  silver  contained  in  ea(;h  of  the  silver 
coins  of  Si)anisli-Ameiicau  countries  is  given  in  the  annexed  table.  The 
weij^Lit  of  tbe  silver  coins  of  other  countries  is  also  given-: 


Country. 


Silver  coins. 


Grains  of 
puni  silver 
contained. 


Argeutino  Keimblic , 

Kolivia 

l>i  a/.il 

Chili 

P'cnailor 

(iruateinala 

Ilayti 

llomluras 

M'lxico 

Niciira'jiia 

Pitii 

United  States  ot  (Colombia 
Venezuela 

Au.stria 

Belgium 

Ji^il't 

France 

Cr.-.ce • 

India 

Italy 

•fapan 

Netlierlauda 

Russia 

S|>aiu 

Swit/.eilaud 

Tripoli 


Peso 

Boliviano  . 
2  iiiilieis. . 
Alilieis  ... 
^  milrois  . . 

Peso 

Sucre 

Peso 

Gourde  . . . 

Peso 

Dollar  .... 

Peso 

Sol 

Pt-SO 

5  bolivars  . 


2  florins 

J'lorins 

5  ft  Miles 

■Jd  ])iasters. 
10  iiiaster.s. 
5  piiisttTS. . 
2  jiiastirs. . 

1  piaster 

5  lian(;s  

5  diaeliinas 

Kupee  

J  rupee  ...'. 

5  lire 

Ten 

2i  florins  .. 

1  llorin 

A  llorin. 

Koublo 

i  roul'le 

J  rouble 

5  ])esctas . . . 
5  francs... 
Mabbub  ... 


347.22 
347.  22 
■MO.  723 
ISO.  361 
90.  180 
347.  22 
347.  22 
347.  22 
347.  22 
347.  22 
377. 17 
347.  22 
347.22 
347. 22 
347.  22 

342. 932 

171.  4G6 

347.  22 

3G(>.  080 

180.040 

<)0.  020 

3G.  008 

18.  004 

347.  22 

347. 22 

10.").  00 

82.  .50 

347.  22 

374.  40 

364.  581 

145.  832 

72. 916 

277.  71 

138.85 

69.  42 

347.  22 

347. 22 

313. 20 


PRODUCTION   OF    GOLD   AND   SILVER. 

In  the  a])iHMi(li.K  to  tbe  Annual  Report  of  tbe  Director  of  tbe  LTnited 
States  Mint  for  1888  are  tables  coin[)ilc(l  from  tbe  latest  oflicial  aiulotber 
reliable  data,  showing  tbe  production  of  tbei)recious  metals  iu,  and  the 
value  of  tbe  coinage  of,  all  nations  for  tiiecalendar  year  1887.  Tbe  total 
production  of  tbe  world  for  tbe  year  was  as  follows:  Gold,  151,712  kilo- 
grams, valued  at  $100,82(>,000;  silver,  3,0U),044  kilograms,  valued  at 
f}V2r),'M(],:U(),  wbicb  gives  a  total  output  of  3,107,75()  kilograms,  valued 
at  !^225,172,;51().  From  tbe  table  sbowing  tbe  world's  entire  production 
of  gold  and  silver,  tbe  following  is  taken,  wbicb  exhibits  the  production 
of  gold  and  silver  iu  American  countries  for  1887: 


THE    TJNITEP    RTATKS    AND    I.ATIN    AMKRTCA. 


325 


Coantries. 


UnKed  States 

Mexico 

Soulli  America: 

Argi'iitiuo  Republic 

Colombia 

Bolivia 

ChMi  

JJrazil  

Venezuela 

Peru  

Conti-jil  America : 

Costa  Rica    

Honduras 

Salvador 


Tot:il 


Silver. 


Kilox. 

I,  --'83,  855 
904,  000 

722 

24,  061 

240,  616 

205,  542 

141 


49,  750 


1,799 
5,774 


2,  716,  260 


Dollarit. 
53,  ;{57, 000 
37,  570,  000 

30,  000 

1,000,000 

10,000,000 

8,  537,  350 

5,850 


2,  067,  650 


74,  750 
240,  000 


112,882,600 


Gold. 


Kilos. 
49,  654 
1,240 

45 

4,514 

109 

2,  395 

1,502 

5,  020 

170 

131 

100 


64,880 


Dollars. 
33,  000,  000 
824,  000 

30,  000 

3,  000,  0(10 

7'J,  000 

1,591,40(1 

998,  000 

3,  :!3G,  (100 

113,000 

87,  000 


63,117,800 


This  shows  that  America  produced  in  1887,  90  per  cent,  of  the  world's 
output  of  silver  and  62  per  cent,  of  the  output  of  gold. 

COINAGE    IN   AMERICAN   COUNTRIES. 

The  coinao-e  of  the  world  for  1887  was,  gold  $124,992,405,  and  silver 
$103,411,397.  Of  this  the  coinage  of  American  countries  was  as  fol- 
lows : 


Country. 


United  States 

Mexico 

Argentine  Republic 

Colombia 

Bolivia 

Chili 

Peru 

Honduras 

Nicaragua 

Hay  ti 


Total 


Gold, 


$23,  972,  383 

398,  647 

9. 173, 370 


25, 360 


33, 769,  760 


Silver. 


$35, 191,0S1 
26,844,031 


663,  069 
1, 763,  451 

333,  000 

],C8.),  000 

71,978 

400,  000 

500,  000 


64,  451,  610 


In  188G  the  Argentine  Republic  coined  in  gold  $1,988,670;  Chili, 
$37,210;  Colombia,  $20,965;  Brazil,  $20,053;  and  Mexico,  $307,490. 
These  were  the  only  Spanish  American  countries  which  coined  gold 
that  year.  During  the  same  year  the  countries  named  coined  silver  as 
follows:  Chili,  $900,080;  Peru,  $592,005;  Colombia,  $1,354,820;  Vene- 
zuela, $1,280,345;  Guatemala,  $27,387;  Brazil,  $30,373;  Costa  Rica, 
$148,030;  Hayti,  $144,750;  Mexico,  $20,991,804.  The  coinage  of  the 
United  States  that  year  was,  gold,  $32,086,709 ;  silver,  $28,945,542. 


326  TRADE    AND    TRANSPORTATION    BETWEEN 

COINAGE  IN   THE   UNITED   STATES. 

The  aunexed  table  shows  the  coinage  of  the  United  States  since  1870. 
Tables  showing  the  coinage  in  detail  from  the  fonndation  of  the  mint 
are  given  in  the  annual  report  of  the  Director  of  the  Mint : 


Year. 


1870 

1871 
1872 
1873 
1874 
1875 
1876 
1877 
1878 
1879 
1880 
1K81 
1882 
1K83 
1884 
1H85 
1886 
1887 
1888 


Gold. 


$23, 
21, 
21, 
57, 
35, 
32, 
40, 
43, 
49, 
39, 
62. 
96, 
65, 
29, 
23, 
27, 
28, 
23, 
31, 


787. 50 
685.  00 
645,00 
747. 50 
630. 00 
940.  00 
4.52.  50 
864.  00 
052.  00 
080.  00 
279.  00 
890.  00 
fi'JS.  00 
!)90.  00 
756.  50 
012.50 
542. 00 
383.  00 
808. 00 


Silver. 

Minor. 

Total. 

$1,  378,  255.  50 

$350,  325. 00 

$24, 927,  368. 00 

3, 104,  038.  30 

99,  890. 00 

24,  230,  613.  30 

2,  .504.  4KH.  50 

369,  380.  00 

24,686,  513.  .50 

4,  024,  747.  60 

379. 455. 00 

61,  426.  9."iO.  10 

6.851,776.70 

342, 475.  00 

42,448,881.70 

1,5,347,893.00 

246, 970.  00 

48,  .540.  803.  00 

24,  50;i,307.50 

210,  800.  00 

71,  203,  560.  00 

28,  393.  04.5.  50 

8,  525. 0(1 

72,401.434  ;.0 

28,518,850.00 

58, 186.  50 

78, 363,  088.  50 

27,  569,  776.  00 

16.5,  003.  00 

66,814,859.00 

27,411,693.75 

391,  395. 95 

90,  111,368.70 

27,  940,  1(53.  75 

428,  151.75 

125,  2 19. 20.5.  .50 

27,973,  132.00 

960,  400. 00 

94.821,217.00 

29,  246,  968. 45 

1,604,770.41 

60,  093,  728.  86 

28,  534,  806. 15 

790,  483.  78 

53,  323, 106.  43 

28,962,176.20 

191,622.04 

56,  926,  810.  74 

32,  0H6,  709. 90 

343,186.10 

61. 37.5, 438.  00 

3,5,  191,081.40 

1,215,686.26 

60.379,150.60 

33,025,606.45 

912,200.78 

65,318,615.23 

PRODUCTION   OF   PRECIOUS  METALS   IN   TUB   UNITED   STATES. 

The  production  of  gold  and  silver  in  the  United  States  for  the  same 
period  was  as  follows : 


Tear. 

Gold. 

Silver. 

Total. 

1870 

$50,  000,  000 
43,500,0(10 
36,  000,  000 
36,  000,  000 

33,  500,  000 
33, 400,  000 
39,  900,  000 
46,  900,  000 
51,2110,0(10 
38,  900,  000 
36,  000,  000 

34,  700,  000 

32,  .500,  000 
30,  000,  000 
30,  800,  000 
31,800,000 
3.5, 000, 000 

33,  000,  000 

$16,000,000 
23,  000,  0(10 
28,  7.50,  (100 
35,  750,  000 

37,  300,  000 
31.700,000 

38,  f-00,  OOO 

39,  800,  01)0 

45,  200,  000 

40,  800,  0(K) 
30,  200,  000 
43,  000,  (lOil 

46,  HOO,  000 
40,  200,  000 
4H,  800,  000 
51,600.0(10 
51,000,000 
.53,  357,  000 

$66,  000,  000 

1871 

66,  .500,  000 

1872 

64,  750,  000 

1873 .                         

71  750  000 

1874 

70,  800,  000 

1875 

6,5,  100,  (H/0 

1870 

78,  70(1  000 

1877 

86,  700,  000 

1878 

9(i,  400,  (i(iO 

1879 

79,  700,  000 

1880 » 

75,  200,  (100 

1881 

77,  700,  000 

1882 : 

79,  3C0.  000 

1883 

70,  200.  (100 

1884 

79,  600,  000 

1885 

Kt,  4(10,  000 

1886 

80,  000,  000 

1887 

80,  357,  000 

1888 

THE    tJNITED    STATES    AND    LATIN    AMERICA.  327 

RATIO   OF   SILVER,   TO   GOLD. 

The  following  table  exhibits  the  ratio  of  silver  to  gold  since  1860: 


Year. 

Ratio. 

Year. 

Katio. 

1860 

15.29 
15.50 
15.  35 
15.  37 
15.37 
15.44 
15. 43 
15.57 
1.5.  59 
15.60 
15.57 
15.  57 
15.  63 
15.92 

1874 

1875 

1876 

16.17 

1.H61 

16. 59 

1862 

17.88 

\H<V.i 

1>77                                                      

17.22 

1864 

1878        ..            

17.94 

leos 

1879     

18.40 

ir-ee 

1880 

18.05 

1867 

1881 

18.16 

1868 

1882 

18.19 

1869 

1883 

1884 

1885 

1886 

18.64 

J870 

18.  57 

1871 

19.41 

1872 

20.78 

1 873 

1887 

21.10 

PRODUCT  OF  MEXICO. 

The  following  table  shows  the  product  of  gold  and  silver  in  Mexico 
from  1877  to  1888  : 


Years. 

Gold. 

Silver.    • 

Total. 

1877  1878    

$747,  000 

881,000 

942,  UOO 

1,013,000 

937.  0(10 

956,  000 

1,  05  .,  000 

914,000 

1,  026,  OOO 

1,  047,  000 

1,031,000 

$24,  837,  000 
25,  12.'),  000 
20,  800,  000 
29,  234,  000 
29.  329,  000 
29,  5(>9,  000 
31,  695,  000 

33,  '226,  000 
,34,112,000 

34,  600,  000 
34,912,000 

$25,  584,  000 

1878-1879  

26,0116,000 

1879  1880  

27,  742,  000 

1880  1881  

30,  247,  000 

1881-1882  

30,  266,  000 

1882-1883  

30,  525,  000 

1883-1884  

32,  750,  000 

1884-1885  

34,  HO,  000 

1885  1886 

35,  138,000 

1886  1887  

35,  647,  000 

1887-1888  

35,  943,  000 

Total 

10,  549,  000 

333,  439,  000 

343,  988,  000 

COINAGE   OF   MEXICO. 

The  coinage  of  Mexico  is  shown  iii  the  following  table  : 


Years. 

Gold. 

Silver. 

Copper. 

1873  1874         

$806,  743 
802,  019 
809,  401 
695,  750 
691,998 
658,  206 
521,826 
49--',  068 
452,  ,.90 
407,  600 
328,  698 
423,  2.50 
425,  000 
410,000 
340,  320 

$18,840,067 
19,  386,  958 
19,454,0,54 
21,415,  128 
22,  084,  203 
22,  162.  987 
24,  018,  528 

24,  617,  395 

25,  146,  200 

24,  083,  921 

25,  377,  379 
25,  840,  728 
25,  850,  000 
25.  600,  000 
26,711,000 

$1.5,  966 

1874-1875                                 .       ...             

2!,  712 

1875  1876                                       

30,  654 

1876  1877                        

9,  035 

1877-1878 

41,364 

1878-1879                    .             

16,  300 

1879  1880      

14,  035 

1880  1881         

42,  258 

1881   1882 

11,972 

1882  1883  



1883-1884  

1884  1885  

188.5-1886 

1880-1887  

18h7  1888                     

Total                  

8,  386,  069 

350,  594,  608 

203,  296 

SUMMARY. 

Gold  $8,386,069 

350,  .594,  608 


Silver. 

Copper 

Grand  total. 


203,  296 


359, 183, 973 


528 


TRADE  AND  TRANSPORTATION  BETWEEN 


Coinage  of  Mexico  froin  the  estahlishment  of  thetnints,  in  1537,  to  the  end  of  the  fiscal  year 

of  1888. 


Piriods 

Gold. 

SUver. 

Copper. 

Total. 

COLONIAL  EPOCH. 
Fiiinillcd  coin  from  1537  to  1731 

$S,  497,  950 
19,  8X9,  014 
40,  391, 447 

$752,  067,  450 
441,6JU,211 
88H,'56:!,  989 

$200, 000 

$760, 765,  406 

Pillar  coin   1732  to  1771 

401,  51K,  225 

Bust  Coin    1772  to  1821 

342, 893 

929,  2!»8.  329 

68,778,411 

2,  082,  260,  656 

642, 89:i 

2,151,581,960 

mPEPKNDENCB. 

Itnrbide'a  imperial  bust.  1822  to  1823 

Kepublic  oanle,  1824  to  June  30,  1873 

557,392 
45,  040,  628 

18,  575,  569 
740,  246,  485 

19  132,961 

.5, 235, 177 

790,  522, 290 

45,  598,  020 

758. 822,  054 

5,  235^  177 

809, 655,  251 

HErUBLTC. 

Eaple  coin,  from  1st  July,  1873,  to  June  30, 
1888 

8,386,009 

350,  594,  608 

203, 296 

359, 183, 973 

SUMMARY. 

Colonial  epoch  (from  1,537  to  1»21) $2,151,581,960 

lull.  pciKhnce  (from  1822  to  1873) M)9,  <i.5:i,  2.il 

Kepublic  (Irom  1873  to  1^88) :!,"'9,  183,973 

Total 3,320,421,184 


RECOINAGE   OF   MEXICAN   SELVER,   DOLLARS. 


In  discussing  the  movement  of  Mexican  silver  dollars,  Dr.  Kimball, 
Director  of  the  Mint,  in  his  report  for  1888,  on  precious  metals,  saj'S : 

How  far  should  exported  Mexican  silver  dollars  be  considered  as  represent  in  <;;  per- 
manent coinage  or  recoinage  ?  It  would  seem  that  all  Mexican  dollars  not  exported 
to  Oriental  countries,  where  their  form  is  preserved,  should  be  considered  as  new  ma- 
terial, and  within  the  purpose  here  indicated,  not  as  foreign  coin.  As  these  dollars 
enter  at  once  into  the  composition  ot  coins  of  other  nations  they  should  not  be 
treated  otherwise  than  as  new  bullion,  shipped  in  the  form  of  dollars  for  convenience 
of  tale. 

Aiiainst  the  Mexican  coinage  of  the  silver  dollar,  long  maintained  both  as  a  trade 
coin  and  as  a  stamped  ingot,  should  therefore,  in  order  to  obviate  duplication,  be 
liniilly  deducted  in  any  general  statement  of  the  coinages  of  nations  at  lca,st  the  sum 
of  all  dollars  coined  over  at  other  mints.  A  considerable  part  of  tlie  rest  of  this  coin- 
age is  treated  in  Europe,  the  United  States,  India,  and  Japan  as  more  or  less  dor6 
bullion,  and  likewise  reiuelted  and  refined.  Hence  the  registration  of  silver  coinage 
in  Mexico  is  significant  of  stability  only  in  small  ratio  to  the  whole  coinage  for  any 
given  period.  For  economic  rather  than  statistical  purposes  it  would  pioltably  lead 
to  the  les.ser  error  to  account  for  one-third  of  the  coinage  of  Mexico  as  directly  going 
back  into  bars  for  refining  and  eventually  for  industrial  employment,  and  another 
third  as  speedily  going  into  coinages  of  other  nations. 

According  to  the  annual  statement  of  Mocotta  &  Gold.sinid,  of  London,  the  imports 
of  Mexican  silver  dollars  into  Great  Britain  during  tlie  year  1887  were,  in  round  num- 
bers, $9,000,000,  and  the  exports  to  China  and  the  Straits  $4,500,000,  leaving  about 
$4,.S00,()00  for  refining  and  Enrojiean  coinages. 

The  value  of  Mexican  silver  dollars  im])orted  into  the  United  States  from  Mexico 
during  the  same  period  wa8.$8,h22,8ril,  of  which  there  w.as  re-exported  from  San  Fran- 


THE    UNITED    STATES    AND    LATIN   AMERICA.  329 

Cisco  to  Cliiiia,  $r),07.'),.U)0,  loavinr    in   tlio  United  StatCR,  probably  molted   at,  the 
mints,  $'^,747,152. 

According  to  the  otHcial  statement  of  tlio  Indian  mints  there  were  deposited  and 
melted  lor  Indian  silver  eoina<j;e  dnrinj^  the  year  18f(7  Mexican  dollars  of  the  value  of 
l,92:?,H«d  rupees,  equivalent  to  liHUJjUUU.  At,  least  8,000,000  Mexican  silver  dollars  are 
therefore  known  to  Iiave  been  melted  for  coinage  purposes  during  the  year  1887. 

PRODUCT   OP  BOLIVIA. 

Exjict  information  as  to  tlie  production  of  the  precious  metals  in 
Boliviii  (;an  not  be  obtained,  and  the  amounts  given  in  the  table  show- 
ing the  ])ioduction  of  American  countries  is  based  on  estimates  made 
by  the  ])irector  of  the  Mint.  From  information  received  from  the 
United  States  minister  at  La  Paz  the  following  datti  is  obtained,  sliow- 
ing  the  exports  of  gold  and  silver  during  the  calender  year  1887 : 


Description. 


Bolivianos  (or 
dollars). 


GOi.n. 

Via  Puerto  Perez,  Desaqua<lero  and  Arica: 

Gold  maniifiictured 

(lold  bullion  (53,774  grams) 

Gold  coin 

SILVER, 

Via  Puerto  Perez  and  Deaaquadero : 

OiR.'f,  17,088  niarca 

Bullion,  24.8niyw  marcs 

Old  plate,  29:{,*i'niarcs 

National  coin , 

Via  Aiica ; 

Ores  (45.  944  kilofframs) 

Bullion  (34,  800  kilograms)  ...  

01(1  plate  (108  kilograms)  

National  coin 

Via  'J'upiza  and  Alota: 

Ores  (2 1 1 ,847  marcs,  1  onz. ) 

Bullion  (190,438  marc8  4on7,.) , 

National  coin 

Total 

Coinage  in  1877 

Total  export  and  coinage 


1,  040. 00 

40,  435.  25 
7,011.00 


170,  850.  00 

248,918.07 

2,  348.  48 

121,  847. 46 

2,  066,  025.  00 

1,  566,  579.  00 

7,  560.  00 
270,  866.  00 

2,  138.  471.. ""lO 
1,  968,  385  50 

76,  032.  00 


8, 686,  969. 26 
1,763,451.22 


10,  449,  420. 48 


COINAaE   OF  PERU. 


During  the  year  ending  June  30,  1888,  there  were  deposited  in  the 
mint  of  I'eru  1,430  bars  of  silver  weighing  69,160,319  kilograms  with  a 
value  of  3,073,789  soles.  The  coinage  during  the  year  was  2,454,000 
soles. 

The  total  valuation  of  gold  and  silver  ores  and  bullion  and  gold  and 
silver  coins  during  the  calendar  year  1887  was  4,629,192  soles. 


330 


1RADE    AND    TRANSPORTATION    BETWEEN 
COINAGE   OF   COLOMBIA. 


There  are  three  mints  in  the  United  States  of  ColoDibia.  Those  at 
Bogota  and  Popayan  were  established  in  1753,  and  that  at  Medellin  in 
1860.  Th'C  total  operations  of  these  mints  from  their  establishment  are 
thus  summarized : 


Hints 

Gold. 

Silver. 

Totftl  deposits 

in  gold  and 

silver. 

Deposits. 

Value. 

Deposits. 

Value. 

Kilograms. 

1C6,  307.  570 

108.  H50. 567 

4,397.113 

Pesos. 
99,  563,  GV3. 15 
64,122,694.10 
•A  IfiR  ."ilT  70 

Kilograms. 
279,  620.  965 

Petot. 

1?  fi7d  417. ''."S 

Pesos. 
112,238,040.40 

8,2:^3.641            :!4C.642.20 
07,  G99. 4-J8  ,     4,  670,  918.  50 

64,  409,  3:iG.  30 

Medellin 

6,  S39,  430. 1.0 

Total 

279, 055. 250 

165, 854, 834. 95 

385  564.034  i  17  Kfll  977.  n.'i  i  18.^.  i>4fi.  «12.  00 

The  product  of  gold  mines  worked  in  Colombia  during  the  period 
from  1753  to  1887  is  placed  at  343,901,470  pesos.  The  total  amount 
coined  was  165,854,834  i)esos,  and  the  amount  exported,  according  to 
reports  made  to  the  authorities,  09,845,321  pesos,  which  would  leave 
90,009,513  pesos  as  the  circulation. 

The  silver  coinage  during  the  same  period  was  nearly  18,000,000  pesos. 
Accurate  data  touching  the  amount  of  silver  exported  can  not  be  ob- 
tained. 

URUGUAY. 

There  is  no  mint  in  Uruguay.  The  imports  of  gold  and  silver  in  1887 
were  $3,500,450,  of  which  $3,240,894  was  received  from  the  Argentine 
Kepublic,  $285,780  from  Brazil,  and  $27,770  from  the  Pacitic  coast. 
The  exports  for  the  year  were  $7,127,137,  of  which  Europe  received 
$4,847,655. 

CENTRAL  AMERICA. 

Guatemala,  Costa  Eica,  and  Honduras  have  mints  which  are  em- 
ployed occasionally  in  the  coinage  of  small  amounts  of  the  lower  de- 
nominations of  silver  coin.  Nicaragua  has  no  mint.  She  has,  however, 
a  small  circulation  of  subsidiar^^  coin  made  in  England.  Salvador  has 
no  mint  and  no  coinage  of  any  kind.  Fully  nine-tenths  of  the  metallic 
circulation  in  all  of  the  Central  American  states  is  made  up  of  Peruvian 
silver  soles  and  Chilian  pesos. 

The  estimated  amount  of  silver  in  circulation  is :  Guatemala,  5,200,000 
l)esos ;  Costa  Rica,  000,000 ;  Nicaragua,  2,000,000,  i)rinci]>ally  in  pesos 
of  Chili  and  Peru.  No  estimate  can  be  given  for  Guatemala  and  Sal- 
vador. 

BRAZIL. 

United  States  Consul-General  Armstrong,  writing  to  the  State  De- 
partment from  Rio  Janeiro,  June  1,  1889,  says : 

For  the  (irHttimo  mnco  lft7t)  iho  curroncy  of  the  country  has  reached  its  par  valno, 
whifli  in  27ri.  j)or  luilri'iM.  The  (lowiiwitrd  tcndcjicy,  wliich  boi^aii  in  IHOf),  was  duo 
to  the  Paraf^uayan  war,  in  whicli  lira/ii  sjxMit.  ;ibout  .$;iOO,000,000.     After  the  war  the 


THE    UNITED    STATES    AND    LATIN    AMERICA. 


331 


cnrroncy  rapidly  rallied,  and  reached  its  par  value  in  1873  aud  again  in  1875  and 
1876.  Afterwards,  in  consequence  of  the  financial  embarrassments  of  the  country,  a 
depression  ensued  and  continued,  with  numerous  liuctuations,  until,  through  the 
efforts  of  the  late  ministry,  the  tinancial  condition  of  the  country  Ix'gan  to  improve, 
reaching  last  year  its  par  value.  In  the  present  year  it  has  nearly  always  been  above 
par,  and  specie  is  flowing  into  the  country  and  entering  into  circulation.  During  the 
first  quarter  of  the  year  the  receipts  of  specie  at  this  port  were  as  follows: 

The  improvement  in  the  value  of  the  currency  is  duo  to  several  causes,  among  which 
the  most  important  are  the  following  : 

(1)  The  general  improvement  in  the  finances  of  the  Empire. 

(2)  The  combination  of  foresight  and  good  fortune  which  has  enabled  the  Govern- 
ment to  provide  for  meeting  its  obligations  at  home  and  abroad  without  disturbing 
the  money  market. 

(H)  The  large  coffee  crop. 

(4)  The  investment  of  a  considerable  amount  of  foreign  capital  in  Brazilian  enter- 
prises. 

(5)  The  withdrawal  from  circulation  of  a  considerable  amount  of  the  paper  cur- 
rency. 

PRODUCTION   OF   THE   WORLD. 

The  follo'sving^  summaiy  show.s  the  quantity  and  vahie  of  jjohl  and 
silver  produced  in  all  countries  of  the  world  for  the  four  calendar  yeans 
ending'  with  1887. 

The  product  is  expressed  in  kilograms  of  fine  gold  and  of  fine  silver, 
and  also  in  terms  of  value,  the  value  of  silver  being  at  coining  rate  in 
United  States  silver  dollars,  equivalent  to  $41.56  per  fine  kilogram. 
The  table  is  believed  to  approximately  present  the  gold  and  silver 
product  of  the  mines  of  the  world,  except  such  desultory  quantities  as 
escajie  record : 


Tear. 

Gold. 

Silver. 

Kilograms. 

Value. 

Kilograms. 

Value. 

18M 

1.53,  070 
156, 156 
149, 338 
151,  712 

$101,729,600 
103,  779,  600 
99,  250,  8/7 
100,  826,  800 

2,  537,  564 
2,841,573 

2,  896.  882 

3,  016,  044 

$105  461  3.50 

1885 

118  095  150 

1886 

lliO  394  400 

1887 

125, 346, 310 

r)32  TRADE    AND    TRANSPORTATION    BETWEEN 


VI. 

SPANISH-AMERICAN  CUSTOMS  REGULATIONS. 


The  following  report  upon  the  customs  regulations  of  the  S])anish 
American  countries  was  prepared  by  William  F.  McConnell,  assistant 
secretary  of  the  New  York  Board  of  Trade  and  Transportation  : 

New  York,  Septcmher  12,  1889. 

Sir:  In  your  letter  of  August  24,  I  am  requested  to  prepare  a  re- 
port embodying  ■■'  facts  relating  to  the  vexatious  customs  regulations  in 
the  several  ports  of  Central  and  South  America,  and  the  embarrass 
ments  experienced  by  exporters  in  the  United  States  therefrom  ;  the 
fines  and  penalities  that  are  imposed  for  trivial  violations  of  these  reg- 
ulations, and  the  habit  of  confiscating  goods  because  the  technicalities 
of  the  regulations  are  not  complied  with." 

This  opens  a  wide  field  of  labor  which  patient  effort  has  i>roven  to  be 
unfruitful  of  practical  results.  Business  men  who  have  dealings  with 
the  Central  and  South  American  niercUaut  transact  such  business  (as 
a  rule)  through  commission  houses  because  of  the  dilliculty  in  com- 
prehending the  tariff  laws  and  regulations  of  these  countries.  The  com- 
mission merchants  appear  to  have  a  wholesome  fear  of  the  consecjuences 
of  publishing  any  complaints,  because  they  must  necessarily  disclose 
business  secrets,  and  may  incur  the  displeasure  of  the  autocratic  cus- 
toms officials  who  wield  such  arbitrary  powers  in  the  several  Covern- 
ments  of  these  Republics.  I  am  therefore  unable  to  present  many 
j)ractical  illustiations  of  the  vexatious  embarrassments  experienced  by 
shippers  to  those  countries. 

One  fact  which  all  shipi)ers  recognize  is  that  the  tariff  and  customs 
regulations  are  the  law  and  are  enacted  with  the  full  knowledge  of 
the  peculiar  requirements  of  the  people  of  the  different  countries, 
and  any  violation  of  such  laws  is  naturally  followed  by  punishment. 
These  laws  are  meted  out  to  all  foreigners  without  discrimination  (ex- 
cept in  one  or  two  minor  i)istances),  and  the  knowledge  of  these  facts 
compels  honest  shippers  to  endeavor  to  obey  them,  without  complaint, 
if  they  are  willing  to  transact  business  under  them. 


THE    UNITED    STATES    AND    LATIN    AMEKIOA.  3o3 

LITTLE  COMPLAINT   IN  CENTRAL  AMERICA. 

Of  tlie  sevcnil  Govcnimeiits  iu  Central  America,  vie,  Guatemala, 
HoiMliiras,  Nicarajjua,  Costa  Rica,  Sau  Salvador,  aii<l  Mexico,  there 
^eeiiis  to  be  little  complaint  except  with  Mexico.  The  customs  laws 
and  regulations  of  the  other  Governments  are  administered  with  fair- 
ness and  facility.  While  the  regulations  are  different,  there  seems  to 
be  a  desire  to  offer  every  opportunity  to  the  shipper  or  importer  to 
transact  business  with  the  least  possible  difficulty  and  expense,  an  illus- 
tration of  which  is  the  acceptance  in  San  Salvador  of  the  exporter's 
private  invoice  under  oath.  In  short,  they  may  be  likened  to  the  cus- 
toms service  of  the  United  States.  The  same  is  true  of  Brazil,  Ecuador, 
Bolivia,  Argentine  Republic,  Paraguay,  and  Uraguay,  of  the  South 
American  group.  Some  fault  is  found  with  Chili,  Peru,  and  the  United 
States  of  Colombia;  but  against  Venezuela  and  Mexico,  merchants  are 
loud  iu  their  denunciation. 

CUSTOMS  REGULATIONS  IN  VENEZUELA. 

In  Venezuela  the  customs  officials  are  paid  small  salaries  and  are 
allowed  50  per  cent,  of  all  fines  or  assessments  that  may  be  inflicted. 
Tliis  naturally  tends  to  make  them  anxious  to  discover  a  pretext  for 
coni[)laint,  with  the  result  that  almost  every  importation  is  interfered 
with,  and  the  revenue  of  the  informer — i.  e.,  the  official — materially  in- 
creased. The  only  redress  the  merchant  has  is  to  appeal  to  the  treas- 
ury department,  but  as,  it  is  asserted,  the  informer  is  ai)i)ointed  as  a 
politician,  with  the  understanding  that  the  perquisites  shall  form  the 
major  part  of  his  remuneration,  appetil  is  generally  considered  useless, 
and  when  decided  has  been  uniformly  against  the  merchant.  If  for  any 
reason  the  case  should  be  decided  favorably  to  the  merchant,  he  has  no 
redress  for  damage  or  delay  (though  such  damage  may  be  caused  by  a 
desire  of  greed  on  the  part  of  the  informer),  because  of  the  fact  that 
the  customs  officials  are  not  under  any  bonds,  and  therefore  have  no 
responsibility.  The  lines  imposed  are  excessive  and  consist  of  double 
the  amount  of  duty,  r,ud  iu  many  cases  a  confiscation  of  the  goods 
besides.  ^ 

Duties  are  assessed  sometimes  by  gross  weight,  while  at  other  times 
duties  are  i)aid  according  to  weight  declared  in  manifests.  For  in- 
stance, one  of  our  Xew  York  commission  houses,  in  August,  sliii)ped  a 
large  consignment  of  miscellaneous  merchandise.  Among  others  was 
Jl  barrels  of  glassware,  the  actual  weight  of  w^hich  was  1,411  pounds, 
or  G8'i  kilos.  In  copying  the  manifest  the  clerk  wrote  1,411  kilos,  and 
this  was  de(;lared.  When  the  goods  arrived  the  customs  authorities 
demanded  duty  on  the  1,411  kilos,  notwithstanding  that  it  was  palpa- 
bly a  clerical  error  and  that  the  package  itself  weighed  only  682  kilos. 
There  was  no  use  to  appeal,  and  the  merchant  was  compelled  to  pay  the 
difference,  which  amounted  to  $127.05.     Jf  the  case  had  been  different 


3o4  TRADE    AND    TUANSPORTATION    15ETWEEN 

and  tlie  barrels  weigLed  1,411  kilois,  while  the  manifest  called  for  only 
08U  lvil(»s,  the  duty  would  have  been  assessed  according  to  the  weight 
of  tlu'  Itaiivls,  without  regard  to  the  manifest,  and  the  merchant  would 
have  had  to  pay  a  fine  of  double  the  amount  of  duty  involved. 

ASSESSMENTS  BY  WEIGHT. 

The  assessment  of  duty  by  gross  weight  is  a  source  of  great  nnfiiir- 
ness,  because  many  goods  which  should  p.iy  duty  by  the  measure  are 
compelled,  by  reason  of  the  manner  of  packing,  to  i>ay  a  greater  duty 
thau  is  just  or  reasonable.  The  fact  that  the  Venezuela  authorities  do 
not  allow  anj'  time  for  the  correction  of  errors  in  invoices  is  another 
source  of  complaint.  In  almost  all  other  countries  three  days'  grace  is 
allowed  for  this  purpose,  but,  as  before  stated,  the  absence  of  such  grace 
cost  a  commission  house  in  New  York  $127.05.  They  also  ignore  the 
notification  by  the  shii)perof  an  error,  and  assess  duty  according  to  the 
rules  laid  down,  as,  for  instance,  in  the  case  before  referred  to.  Another 
troublesome  feature  is  the  coustaut  contlictiou  by  tlie  customs  authori- 
ties in  the  construction  of  the  law,  which,  however,  must  be  complied 
Avith  in  the  most  minute  particular.  The  tariff  is  divided  into  nine 
classes,  and  the  exporter  must  classify  his  goods  in  his  invoice.  This  is 
a  very  difficult  thing  to  do,  because  the  name  of  the  goods  purchased 
in  the  United  States  may  not  be,  and  often  is  not,  the  local  name  of  the 
goods  iu  South  America.  This  is  especially  true  of  print  goods,  etc. 
Prints  are  specified  as  first  class,  while  other  goods  known  iu  this 
market  as  prints  may  be,  and  are,  classified  iu  South  American  markets 
under  another  heading.  Thus,  upou  the  examination  of  the  goods  as 
j)rovided  by  law  the  custom-house  official  finds  what  he  pleases  to  call  a 
violation,  and,  notwithstauding  the  honest  effort  of  the  exporter  to 
classify  correctly,  he  is  subjected  to  a  penalty. 

A  GREAT   CAUSE   OF   COMPLAINT. 

Section  108  of  the  tariff"  law  provides  that  if  "  there  is  a  contradic- 
tion iu  the  tariff",  the  higher  duty  should  be  imposed  upon  the  article  in 
questiou."  This  is  often  a  source  of  trouble.  For  exaiiiple,  a  merchant 
will  order  a  consignment  of  goods  and  ask  for  a  sample  of  another  arti- 
cle, which  may  be  shipped  in  the  sauic  package.  The  sami)le  may  be 
rated  at  a  higher  duty  thau  the  other  articles,  but  notwithstanding 
that  it  is  ouly  one  piece,  all  the  other  goods  iu  the  shipment  must  i)ay 
the  rate  of  duty  assessed  on  that  sample.  Under  this  ruling  shipments 
of  small  goods  must  be  i)acked  in  a  great  nuiny  i)ackages,  enhancing 
the  cost  to  the  manufacturer  or  shi[)per. 

The  regulations  regarding  declarations  are  very  severe.  The  tariff 
classifies  lamps  according  to  their  composition,  gold,  silver,  brass,  or 
whatever  it  may  be,  and  also  provides  for  "  lamps,  not  specified." 
This  latter  clause  was  construed  by  a  merchant  iu  this  city  to  cover 


THE    UNITED    STATES    AND    LATIN    AMERICA.  335 

a  miscollaiioons  sliii)m(Mit  of  lamps  "  witliout  sj^'eincatioii,"  aiul  lie 
8liii)i)C(l  accordingly.  The  couscqueiice  was  a  lino,  because  the  words 
of  tlie  tariff  ''hot  specified"  were  omitted  from  the  invoice.  This  is  a 
])ractical  illustration  of  the  technicalities  of  the  customs  regulation  of 
Venezuela  aud  the  difticulty  experienced  under  them.  Another  serious 
and  expensive  fault  is  found  iu  the  iron-clad  rules  governing  the  close 
of  business  hours  in  the  custom-houses.  The  hour  for  closing  having 
arrived,  business  is  suspended  for  the  day,  and  the  mercliant,  steam- 
ship, or  sailing  vessel  must  postpone  or  delay  its  business  until  the 
ollicials  are  once  more  ready  to  proceed.  This  is  often  the  source  of 
trouble  and  expense,  especially  to  the  steam-ship  lines.  Merchants 
would  also  welcome  the  establishment  of  the  bonded  warehouse  system, 
the  absence  of  which  is  now  severely  felt. 

GOODS   SHIPPED   "  IN  TRANSIT." 

A  matter  which  is  attracting  the  attention  of  the  merchants  of  the 
United  States  of  Colombia,  as  well  as  the  exporters  of  this  country  and 
of  Venezuela,  is  the  handling  of  goods  shi[)ped  to  Colombia  via  Ven- 
ezuela. Goods  intended  for  certain  i^arts  of  Colombia  are  shipped  iu 
this  way  to  evade  the  enormous  expense  of  transportation  over  the 
moujitains,  and  the  merchant  so  shipping  must  not  only  conform  to  the 
Colombian  tariff  but  also  to  that  of  Venezuela.  As  these  tariffs  do  not 
usually  agree  the  shipper  is  almost  sure  to  get  into  trouble.  The  goods 
must  be  declared  "  in  transit ;  "  if  this  is  omitted  the  Venezuela  author- 
ities mark  them  for  home  consumption  and  collect  duty  accordingly, 
with  the  imposition  of  a  fine  if  everything  does  not  accord  with  their 
tariff"  or  classification. 

The  following  recent  experience  of  one  of  the  most  prominent  and 
experienced  commission  houses  in  this  country  will  demonstrate  the 
difficulty  met  with  under  this  regulation.  They  had  a  consignment  to 
a  merchant  in  Colombia  to  be  shipped  via  Maracaibo,  iu  Venezuela. 
Through  some  mistake  the  goods  were  not  declared  in  the  manifest  as, 
"iu  transit,"  consequently  they  were  compelled  to  pay  duty  at  Mara- 
caibo. The  consignee  in  Colombia  declined  to  pay  duty  at  two  ports 
on  the  same  goods,  and  left  them  at  Maracaibo  for  the  account  of  the 
American  commission  merchant,  who  subsequently  arranged  to  dispose 
of  them,  as  no  agreement  or  settlement  could  be  effected  with  the  cus- 
tom-house to  obviate  the  ditHculty. 

The  constitution  of  Venezuela  allows  no  export  duty,  but  this  is  over- 
come by  what  is  known  as  a  transit  duty,  which  is  levied  according  to 
the  gross  weight  of  the  goods  without  regard  to  value  or  quality. 

DISCRIMINATIONS. 

As  stated  in  the  beginning  of  this  report,  the  tariff  does  not  dis- 
criminate, except  iu  two  instances.  The  one  which  affects  the  United 
States  is  the  discrimiuatiog  in  favor  of  (Spanish  and  Bordeaux  wines. 


336  lliAUi:    AIS'D    TKANSPOKTATIOX    BETWEEN 

The  taritl  provides  that  Spanish  and  Bordeaux  clarets,  in  any  pack- 
age whatever,  pays  25  cents  of  a  boliva,  while  wine  from  other  coun- 
tries pays  75  cents  of  a  boliva,  unless  it  be  iu  hogsheads,  barrels,  or 
casks,  when  the  duty  is  25  cents.  As  only  the  cheapest  wines  are 
shipped  in  barrels  or  casks,  and  as  the  Si)anish  and  Bordeaux  wines 
are  admitted  at  the  same  duty  in  any  package,  the  discrimination  in 
their  favor  amounts  to  about  10  cents  a  kilo.  Under  this  discrimina- 
tion an  American  exporter  who  undertook  to  ship  California  claret  was 
unable  to  find  a  market  for  his  goods. 

The  other  discrimination  is  against  goods  imported  from  the  West 
Indies,  which  pay  30  per  cent,  additional  duty. 

THE  TARIFF    REGULATIONS  OF   MEXICO. 

Mexico  is  as  exacting  in  its  administration  of  customs  law  as  Vene- 
zuela. Many  of  the  foregoing  complaints  apply  with  equal  force  to 
Mexico.  A  merchant  consigning  a  shipment  of  merchandise  to  Mexico 
must  be  so  specific  that  it  is  almost  an  impossibdity  to  get  the  consular 
invoice  absolutely  correct.  The  invoice  is  complicated  and  the  fines  ex- 
cessive. I  have  been  unable  to  obtain  any  facts  about  the  administra- 
tion of  the  Venezuelain  law  that  do  not  apply  w  ith  equal  force  to  Mexico. 
Duties  are  levied  by  net  weight,  measure,  and  legal  weight,  which  sig- 
nifies liquid  weight.  An  additional  duty  of  12^  per  cent,  is  levied  upon 
liquors,  and  one  of  2^  jjer  cent,  on  other  articles  for  the  support  of  the 
hospitals  and  other  public  institutions.  An  evidence  of  the  severity  of 
the  fines  is  found  in  the  case  of  a  shipment  of  several  packages  of  mer- 
chandise to  Vera  Cruz.  All  but  one  package  of  this  lot  passed  through 
as  correct,  although  the  weights  appeared  on  the  invoice  in  American 
pounds.  The  one  package,  however,  was  held  because  the  weight  was 
not  enumerated  in  kilos,  or  Spanish  weight,  and  the  merchant  was 
fined  $150  penalty.  This  case  seems  also  to  demonstrate  the  incapa- 
bility of  the  customs  officials. 

THE   CONDITIONS  IN  CHILI. 

Chili  requires  no  consular  invoices,  and  so  far  as  the  administration 
of  their  tariff  laws  and  regulations  is  concerned  is  evidently  fairly  satis- 
factory. Duties  are  paid  in  p«per  38d.  pei  dollar  as  a  parity  of  Chilian 
money  being  taken  as  an  arbitrary  basis.  This  presents  a  fluctuating 
duty,  which  is  burdensome  and  unreliable.  When  exchange  declines 
the  duties  are  burdened  with  a  premium  to  adjust  them  to  the  SSd.  basis. 
For  example,  if  exchange  goes  to  25d.  goods  taxed  at  40  per  cent,  are 
assessed  the  ditierence  iu  exchange  and  pay  about  CO  per  cent.  This 
is  unfair  and  discouraging  to  the  merchant,  and  is  the  principal  cause 
of  complaint. 

OBJECTIONABLE  RULES  IN   PERU. 

I'eru  is  constantly  changing  its  tariff'  and  customs  regulations,  and 
thereby  rendering  it  difficult  to  comply  with  the  requirements,  although 
the  administration  of  the  law  is  fair  and  equitable. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  337 

One  very  objectionable  feature  in  Peru  is  the  scale  of  heavy  lees 
which  must  be  paid  for  the  certification  of  invoices.  An  invoice  of 
$10,000  must  pay  $25  for  a  certification,  and  an  invoice  for  $110  jmys 
$4,  or,  in  other  words,  about  4  per  cent,  of  its  value.  Thus  a  heavy  tax 
is  imposed  upon  the  merchant  in  addition  to  the  inconvenience  to 
which  he  is  ])ut.  The  re<i;ulation  providing  for  the  imposition  of  the 
higher  duty  in  case  of  any  question  is  also  enforced  in  Peru.  Under 
this  provision  a  shipment  of  cheap  glass-lamp  founts  was  ordered  from 
New  York.  As  glass  paid  a  lower  duty  than  brass,  the  manufacturer 
was  directed  to  remove  the  brass  collars  which  are  attached  and  ship 
them  se])arately.  Through  some  oversight  this  order  was  misunder- 
stood and  the  lamps  were  shipped  with  the  collars  attached.  The  cus- 
tom authorities  of  Peru  at  once  levied  duty  upon  the  entire  shipment 
at  the  rate  specified  for  brass,  as  though  the  goods  were  composed  of 
that  metal,  and  the  manufacturer  was  compelled  to  lose  $14  on  the 
shiprhent. 

Another  imiwrtaut  feature  in  their  regulations  is  the  compulsory  dec- 
laration of  the  weight,  in  kilos,  of  goods,  such  as  lumber,  staves,  etc., 
which,  however,  do  not  i)ay  duty  according  to  such  declaration  of  weight, 
but  according  to  cubic  measure.  It  is  extremely  difficult,  if  not  imi^ossi- 
ble,  to  declare  the  correct  weight  on  such  goods,  becauseof  the  variation  in 
size,  while  such  declaration  is  rendered  hazardous  because  of  the  double- 
duty  tine  which  is  likely  to  be  imposed  for  false  weights,  particularly 
as  there  is  no  allowance  for  shrinkage  or  decrease.  With  these  few  but 
imi)ortant  disadvantages  removed,  merchants  would  find  no  fault  with 
Peru. 

THE    TARIFF   OF   COLOMBIA. 

The  tariff  of  the  United  States  of  Colombia  is  divided  into  fifteen 
classes,  and  an  exporter  is  required  to  classify  the  goods  in  his  invoice. 
Conditions  are  such,  because  of  the  different  terms  api)lied  to  goods, 
that  it  is  almost  an  impossibility  for  the  ordinary  merchant  or  manu- 
facturer to  do  this,  unless  he  has  had  a  practical  business  experience  in 
Colombia.  While  some  of  the  embarrassments  to  shippers  in  other 
South  and  Central  American  countries  are  experienced  in  Colombia, 
there  is  a  better  opportunity  for  the  merchant  to  secure  justice.  There 
is  a  tribuiral  which  sits  as  a  court  of  apj)eals  on  customs  matters  where 
the  aggrieved  merchant  can  go  with  the  knowledge  that  the  decisions 
are  as  a  rule  just  and  equitable.  The  merchants  of  the  several  other 
South  and  Central  American  countries  are  beginning  to  realize  the  im- 
portance of  this  body. 

This,  I  believe,  cov'ers  all  the  independent  governments  of  Central 
and  South  America.  In  most  of  their  tariff  laws  and  regulations  are 
modern  institutions.  Many,  or  most  of  them,  were  formerly  free-trade 
countries,  and  when  their  tariff  laws  were  enacted  the  idea  uppermost 
in  their  minds  was  to  prevent  smuggling.  The  merchant  at  home  and 
the  foreigner  were  presumed  to  be  in  league  to  circumvent  the  goveru- 
S,  Bx.  54 22 


338         TRADE  AND  TKANSPOKTATION  BETWEEN 

luent,  and  so  laws  were  drawn  and  regulations  adopted  wliich  have 
become  obstructive  and  burdensome  to  the  honest  merchant.  In  many 
instances  these  laws  have  been  drafted  by  men  from  the  interior  of  the 
country,  who  know  little  or  nothing  of  the  practical  requirements  of 
foreign  commerce,  and  whose  great  aim  was  to  procure  as  much  revenue 
as  possible  and  prevent  fraud.  No  doubt  exists  that  much  precaution 
is  necessary,  because  of  the  well-known  eflorts  on  the  part  of  their  native 
merchants  and  of  foreigners  to  evade  the  laws.  The  unanimous  senti- 
ment of  all  men  who  do  business  with  these  countries,  the  most  of  whom 
are  natives  of  Central  or  South  America,  is  that  a  uniform  system  of 
customs  regulations  in  the  several  governments  is  the  only  eflficient 
remedy  for  the  evils  that  now  exist. 

Respectfully  submitted. 

Wm.  F.  McConnell. 

William  E.  Curtis, 

Special  Agent,  State  Department,  Washington,  D.  G. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  339 

Appendix  A. 

FORGED  TRADE-MARKS  IN  SOUTH  AMERICA. 

[Morris  S.  Wise,  editor  of  the  Trade-mark  Kocord,  in  New  York  Indepeudeut.J 

It  will  be  the  iiurpose  of  this  coinmuniciition  to  call  attention  to  some  facts  of  the 
highest  importance  to  American  manufacturers  whose  wares  are  sold  in  the  South 
American  markets. 

On  the  eve  of  tlie  holding  of  a  friendly  congress,  wherein  representatives  of  the 
South  American  countries  will  meet  our  own  representatives  for  the  discussion  of 
questions  affecting  the  industrial  and  economic  relations  which  exist  between  the 
United  States  and  the  nations  of  the  southern  portion  of  our  continent,  the  facts 
herein  briefly  presented  may  prove  of  some  value  in  securing  the  correctiou  of  com- 
mercial abuscH,  which  seem  to  prevail  in  many  of  the  South  American  countries; 
and  as  these  abuses  not  alone  vitally  afl'ect  the  volume  of  our  commercial  relations 
with  those  localities,  but  directly  injure  our  American  manufacturers,  it  should  re- 
quire but  slight  persuasion  to  invite  the  serious  attention  of  the  American  public  to 
the  questions  hereinafter  discussed. 

IMPORTANCE   OF  TRADE-MARKS. 

The  trade-mark  is  the  flag  of  the  manufacturer. 

Even  as  the  ensign  of  a  nation  symbolizes  all  that  is  good,  great,  powerful,  and 
ennobling  in  the  people  to  which  it  belong,  so  the  trade-mark  is  the  commercial  sign- 
manual,  the  autographic  guaranty  of  the  origin,  and  thus  indirectly  of  the  quality 
and  value  of  the  article  to  which  it  is  attached  ;  and  it  is  generally  true  that  in  the 
ratio  or  proi)ortion  of  a  descending  scale  of  learning  and  intelligence  of  the  consumers 
or  users  of  the  article  bearing  the  trade-mark  is  found  an  ascending  or  rising  scale 
of  importance  in  the  office  which  such  mark  or  symbol  is  required  to  perform.  The 
application  of  this  proposition  to  the  ordinary  purchasers  of  American  goods  in  South 
American  markets  is  self-evident  in  its  very  statement. 

It  will  also  be  conceded  that  in  every  market  in  the  civilized  world  the  question  of 
price  or  cost  enters  very  largely  into  the  matter  of  consumption,  most  especially  in 
all  markets  wherein  competition  is  found. 

It  may  also  be  pertinently  stated  that  it  has  been  long  urged  by  a  large  number  of 
American  jiolitical  economists  that  many  internal  causes  exist  in  this  country  to  pre- 
vent our  obtaining  that  large  share  of  the  South  American  trade,  which  by  natural 
right  should  come  to  us.  We  will  in  this  article  avoid  the  Scylla  and  Charybdis  of 
Free  Trade  and  Protection,  and  prove  that  the  reason  of  our  lack  of  South  American 
patronage  must  to  a  large  extent  be  due  to  external  causes.  In  other  words,  the  fault 
ia  not  that  of  the  American  manufacturer,  but  is  owing  to  the  unfair,  unscrupulous, 
and  dishonest  competition  suflered  by  our  manufacturers  in  the  markets  of  South 
America. 

THE   TRADE-MARK   PIRATE   LN   GERMANY. 

It  is  somewhat  of  a  harsh  arraignment  to  make,  but  the  evidence  at  hand  seems  to 
justify  the  assertion  that  the  great  trade-mark  pirate  who  commits  the  most  injurious 
depredations  upon  our  commerce  in  South  America,  is  our  good  friend  the  German. 
Austria  and  Belgium  help  him  along,  and  even  the  honest  John  Bull  will  occasionally 
send  out  a  privateer;  but  tire  damning  fact  seems  to  be  proven  beyond  perad venture 
that  the  German  is  the  most  skillful  adept  in  the  great  modern  art  of  imitating  trade- 
marks. Not  only  in  southern  climes  has  he  plied  his  craft,  but  he  has  so  often  stabbed 
John  Bull  in  the  very  home  of  the  latter  that  John  jjassed  his  celebrated  Merchandise 


VAO  TKAliK    AND    'l'KA.NSl'(  »1MA'1  lO.N     I'-KTWEEN 

Marks  act,  as  we  vorily  believe,  for  the  iiioie  especial  benefit  of  his  Teutonic  ally, 
whose  luetlunls  were  far  from  being  tonic  in  any  known  connnercial  sense  of  the  word. 

In  February,  li^ST,  two  deputations  from  ylieftield,  England,  waited  ou  the  Board 
of  Trade  at  London,  and  demanded  stringent  protective  legislation  agaiustthe  frauds 
the  Shetlield  cutlers  bad  been  conjpidled  to  suffer  for  a  long  time.  They  declare  that 
Solingen  roods  were  being  imported  into  England  from  Germany  marked  "steel" 
and  "cast-steel,"  which  were  run  metal,  or  in  other  words  a  "steal,"  but  not  true 
BteeL 

It  was  proven  that  German  maunfacturers  had  had  the  boldness  of  making  "  Rogers 
catlerj%"  Sheffield  mark,  for  the  American,  South  American,  and  East  Indian  trade. 
The  celebrated  English  "Cubtis"  and  "Marvey"  was  being  counterfeited  under  the 
close  marks  of  "Curtis  and  Harvey." 

The  Loudon  Times  in  August,  1887,  called  attention  to  these  facts  and  showed  how 
many  lines  of  English  trade  suffered  from  this  unfair  German  competition. 

Having  illustrated  the  penchant  of  the  German  to  cruise  in  forbidden  waters  close 
at  home,  we  will  submit  the  official  evidence  furnished  by  some  of  our  consuls  sta- 
tioned at  South  American  points,  which  goes  far  to  sustain  the  broad  chaigo  herein- 
before made. 

FRAUDS   PRACTICED   IN   SALVADOR. 

In  the  report  made  in  1887,  to  our  Dejjartment  of  State,  Consul  de  Prere,  at  Sau 
Salvador,  states  substantially  as  follows: 

"Products  of  American  toil,  skill,  and  industry  are  supplanted  in  Salvador,  aiul  it 
is  supposed  everywhere  in  Central  America,  by  base  unitatious.  Iron  viachvlcn  are 
substituted  for  those  of  steel  as  manufactured  in  New  York  and  Connecticut.  The 
trade-marks  of  American  artisans  are  stamped  or  imprinted  on  the  worthless  German 
implements,  and  at  least  50,000  machetes  are  annually  sold  in  Sau  Salvador  alone,  at 
the  average  price  of  $15.50  ajjiece. 

"American  sheetings,  muslins,  and  calicoes  are  driven  out  of  the  Central  American 
nuirkets  by  goods  bearing  the  brands  and  trade  marks  of  the  best  American  mills. 
These  worthless  German  goods  are  made  of  East  India  and  Egyptian  cheap,  short 
staple  cotton,  and  are  utterly  valueless.  Perhaps  the  poorest  beverage  I  ever  im- 
bibed was  German  claret,  sold  here  and  bearing  the  trade-mark  of  the  best  wiue- 
grower  of  California.  Beautiful  bottles  bearing  on  their  exteriors  pretty  labels  of 
the  great  beer  distilleries  of  St.  Louis,  Philadelphia,  and  Milwaukee  are  full  of  foul 
decoctions  brewed  in  Germany.  Perhaps  the  deadliest  of  all  these  beverages  is  the 
'Kentucky  wliisky,'  so  labeled,  but  distilled  in  Germany.  I  have  seen  Colts  and 
Kemington  repeaters  sold  here  tiiat  wore  never  in  the  United  States.  I  was  told  that 
these  were  products  of  that  forgotten  '  IJirmingham,'  of  England,  but  these  illilerate, 
untroubled  natives  demand  the  cheapest  goods.  Cast-iron  sewing-machines,  axes, 
and  beverages  are  sujjplied  l>y  Germany." 

This  eviilence,  tinged  though  it  is  by  a  slight  vein  of  what  a  celebrated  American 
humorist  would  term  "  sarcasm,"  is  neverthelesss  straight  to  the  point. 

It  was  confirmed  to  me  jiersonally  by  a  geutlemau  whom  I  met  in  London  last 
Bunnner,  and  who  has  charge  of  the  affairs  of  a  large  English  comi)any  in  Central 
America.  He  was  an  Englishman,  and  bewailed  the  fact  that  the  Germans,  with 
their  cheap  imitation  goods,  were  driving  good,  honest,  British  goods  out  of  the  Cen- 
tral American  market.  As  a  patriotic  American  I  mentally  exclaimed  at  the  tiuus, 
"  A  plague  on  both  your  houses." 

A    rUOIKST  FROM    FRANCE. 

To  show  the  dominant  spirit  of  Germany  in  the  matter  of  trade-marks,  the  action 
of  the  Chamber  of  Commerce  of  Rouen  and  St.  Quentin  lodged  with  the  French 
minister  of  commerce  issigiiifi(-ant. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  341 

The  chamber  protested  against  the  action  of  the  International  Tradf-niark  Con- 
ference held  at  Rome,  in  April,  18H6,  on  the  ground  that  the  preponderating  iiitlii.-nce 
of  Germany  had  secured  the  adoption  of  a  paragraph  providing  that  "the  intention 
shall  not  be  considered  fraudulent  when  it  shall  bo  proved  that  the  name  atiixed  on 
imported  products  is  placed  there  with  the  consent  of  the  manufacturer  concerned." 
The  chamber  contended  that  this  clause  wonld  enable  a  German  firm  having  in 
France  a  more  or  less  fictitious  partner  to  introduce  German  goods  into  the  Frencli 
market  under  a  French  marli  and  as  of  French  production. 

So  England  ia  not  alone  in  her  complaints  against  these  practices. 

TRADE-MARK   FORGERIES   IN   BRAZIL. 

In  a  recent  report  made  to  our  State  Department  by  our  consul,  L.  G.  Bennington,  at 
Rio  Grande  do  Sul,  Brazil,  a  long  chapter  is  devoted  to  an  examination  of  the  practice 
becoming  quite  prevalent  in  Brazil  and  elsewhere  in  South  America  of  falsifying  the 
trade- marks  of  certain  well-known  and  poi>iilar  articles  of  foreign  manufacture. 

Our  consul  says : 

"The  trade-mark  Indian  head  of  a  certain  brown  cotton  is  extensively  imitated. 
I  am  informed  by  a  thoroughly  reliable  English  merchant  of  this  city  that  a  certain 
dealer  in  Pelotas  has  a  stencil  plate  made  the  exact  imitation  of  the  genuine  Indian 
head,  with  which  he  puts  the  mark  of  any  grade  of  brown  cotton  he  sees  proper,  or 
that  suits  the  purpose  of  his  trade,  no  difference  where  the  cotton  was  manufactured. 
This  is  not  only  done  in  Pelotas,  but  elsewhere  in  the  province. 

"  When  I  was  in  Porto  Alegre  I  came  upon  a  small  article  of  American  manufacture, 
which  is  widely  and  favorably  known,  not  only  in  the  United  States,  but  in  foreign 
markets,  especially  here,  called  Mason's  shoe-blacking.  This  article  is  so  closely  im- 
itated by  the  label  on  the  lid  of  the  box  as  to  amount  to  a  complete  deception,  unless 
a  buyer  was  very  well  acquainted  with  the  genuine  article." 

On  the  sale  of  American  manufactures,  the  consul  continues  as  follows: 

"  The  chief  of  American  goods  sold  in  Porto  Alegre  are  kerosene  oil,  flour,  Collin's 
axes,  and  some  stoves  for  cooking  purposes.  It  is  provided  by  law  that  each  city 
may  levy  a  tax  equal  to  $250  on  each  commercial  traveler  who  sells  goods  by  sample. 
This  is  not  only  an  unwise  and  obstructive  policy  for  these  people  to  follow,  but  re- 
sults in  a  complete  evasion  of  the  law  by  the  salesman  sending  his  samples  from  city 
to  city,  addressed  to  some  merchant,  who  takes  charge  of  them,  has  them  opened  in 
Ms  place  of  business,  and  for  the  time  the  commercial  traveler  is  supposed  to  be  in 
the  employ  of  the  merchant  as  a  clerk.  English,  German,  and  Portuguese  houses  do 
the  business  very  largely  of  the  province,  and,  of  course,  push  the  goods  made  in 
their  respective  countries  to  the  very  best  of  their  ability." 

CONCLUSION. 

Enough  has  been  shown  in  the  foregoing  brief  r^mim^ of  this  most  important  sub- 
ject to  warrant  at  least  the  following  suggestions,  namely : 

First.  The  matter  of  the  protection  of  the  marks  of  commerce  against  piracy  can 
not  be  too  strongly  brought  to  the  attention  of  the  coming  Congress. 

Second.  The  subject  herein  treated  deserves  the  fullest  investigation,  and  our  State 
Department  should  instruct  every  American  consul  stationed  in  South  America  to 
investigate  carefully  the  alleged  counterfeiting  of  American  marks  and  report  thereon. 
These  statistics  will  be  found  valuable. 

TJiird.  If  these  official  reports  shall  establish  the  fact  that  manufacturers  of  Ger 
many  or  of  other  countries  are  engaged  in  a  systematic  and  wholesale  imitation  of 
American  trade-marks  in  such  foreign  countries,  our  Government  should  certainly 
act  promptly  for  the  protection  of  our  American  manufacturers,  by  requesting  all 
foreign  governments,  either  where  the  false  goods  are  made,  or  where  they  are  offered 
for  sale,  to  suppress  such  illicit  traffic. 


342         TRADE  AND  TRANSPORTATION  BETWEEN. 

Tlio  English  inercliandiBe  marlvH  act,  which  ishoing  honestly  enforced  by  the 
English  Government,  has  almost  completely  suppressed  such  piracies  in  Great  Brit- 
ain ;  and  what  the  latter  country  can  do  for  the  cause  of  commercial  honesty,  other 
countries  can  do  and  ought  to  do. 

The  subject  is  one  of  paramount  importance  to  nearly  every  commercial  interest  in 
our  country,  and  with  the  view  of  directing  attention  thereto,  this  communication 
has  been  pr©pare<l,  and  it  will  well  serve  its  purpose  if  it  tends  to  arouse  our  American 
uanufacturers  from  their  apparent  torpor  and  seeming  indifference  to  their  own  best 
interests. 


VII. 

THE  PLANT  STEAM-SHIP  LINE. 


New  York,  January  14, 1890. 

Dear  Sir:  In  reading  the  first  edition  of  the  publication  entitled 
"Trade  and  Transportation  between  the  United  States  and  Spanish 
America,  by  William  Eleroy  Curtis,"  it  seemed  to  me  that  you  had  not 
given  the  Plant  Steam-ship  Line  the  favorable  consideration  to  which 
it  is  entitled.  You  will  remember  that  in  a  recent  conversation  had 
with  you  at  the  banquet  given  in  the  city  of  New  Haven  to  the  dele- 
gates of  the  International  American  Conference,  I  called  your  attention 
to  the  matter  and  suggested  that  I  would  write  you  on  the  subject. 

I  therefore  beg  leave  to  submit  for  your  information  a  brief  history 
of— 

THE  TAMPA,  KEY  WEST  AND  HAVANA  MAIL  ROUTE. 

Key  West,  if  not  the  first,  certainly  the  second  city,  of  Florida  in 
population  and  business  importance,  for  very  many  years  had  an  in- 
frequent, slow,  uncertain,  and  expensive  mail  service.  The  cost  and 
manner  of  supplying  this  office  from  1870  to  1886,  each  year  inclusive, 
is  shown  by  the  following  statement,  obtained  from  official  sources: 

1870.— New  Orleans  to  Key  West,  one  trip  a  week $67,  GOO.  00 

1871.— New  Orleans  to  Key  West,  one  trip  a  week 76,000.00 

New  York  to  Key  West,  one  trip  a  week 26,000.00 

1872.— New  York  to  Key  West,  one  trip  a  week 31, 200.  00 

New  Orleans  to  Key  West,  one  trip  a  week 76, 000.  00 

1873.— New  Orleans  to  Key  West,  one  trip  a  week 70,000.00 

1874.— New  York  to  Key  West,  one  trip  a  week  31,200.00 

Key  West  to  Tampa,  twice  a  month 7,475.00 

187.').— New  York  to  Key  West,  one  trip  a  week 5,200.00 

Cedar  Keys  to  Key  West,  one  trip  a  week 18, 000.  00 

1876. — Now  York  to  Galveston,  C.  H.  Mallory  »&  Co.,  one  trip  a  week, 

stopping  at  Key  West 10,400.00 

Cedar  Keys  to  Key  West,  James  McKay,  one  trip  a  week 18,  000.  00 

1877.— Cedar  Keys  to  Key  West,  N.  O.  F.  &  H.  S.  S.  Co.,  one  trip  a  week.  18,  000.  00 

New  Orleans  to  Key  West,  same  company,  one  trip  a  week 5,200.00 

1878.— Cedar  Keys  to  Key  West,  N.  O.  F.  «&  H.  S.  S.  Co.,  three  trips  a 

week .'')2,  .500.  00 

1879.— New  York  to  Galveston,  C.  H.  Mallory  &  Co.,  2,036  miles,  one  trip 

a  week,  stopping  at  Key  West 10, 400.  00 

Cedar  Keys  to  Key  West,  N.  O.  F.  &  H.  S.  S.  Co.,  two  trips  a  week.  35, 000. 00 

343 


344  TRADE    AND    TRANSPORTATION    BETWEEN 

1880.— New  York  to  Galveston,  C.  II.  Malloiy  &  Co.,  2,0oG  mile.s,  one  trip 

a  week,  stopping  at  Key  West $10,400.00 

Cedar  Keys  to  Key  West,  Miller  &  Henderson,  290  miles,  two  trips 

a  week 32,000.00 

1881. — New  York  and  Galveston,  2,075  miles,  $200  per  round  trip,  one 

trip  a  week,  stopping  at  Key  West 10, 400.  00 

Cedar  Keys  to  Key  West,  John  Miller,  298^  miles,  two  trips  a  week.  31,  000. 00 
1882.— New  York  to  Galveston,  C.  H.  Mallory  &  Co.,  2,075  miles,  one 

trip  per  week,  $200  per  ronnd  trip 10,  100.  00 

Cedar  Keys  to  Key  West,  John  Miller,  298^  miles,  two  trips  a  week.  31, 000.  00 

1883.— Cedar  Keys  to  Key  West,  29^.}  miles,  .John  Miller,  two  trips  a  week.  31,  00(».  00 

18S4.— Cedar  Keys  to  Key  West,  John  Miller,  two  trips  a  week,298i  miles.  31,  000.  00 

1885. — Tampa  to  Key  West,  J.  D.  Emerson,  two  trips  a  week,  266  miles. . .  23,  (iOO.  00 

1886.— Tampa  to  Key  West,  J.  D.  Emerson,  266  miles,  two  trips  a  week. . .  22, 5()5.  74 

The  important  commercial  and  social  correspondence  between  the 
United  States  and  the  Island  of  Cuba  was  carried  in  a  still  more  uncer- 
tain and  irregular  manner. 

THE  FORMER  SERVICE. 

The  service  became  particularly  unsatisfactory  to  the  public  and  the 
Department  during  the  years  1885  and  188G,  when  the  Ke.y  West  mails 
were  carried  from  Tampa  to  Key  West  two  trips  a  week,  and  the 
Havana  mails  were  transported  by  the  steam-ships  sailiiiii-  between  New 
York  and  Havana.  The  steam-boat  which  carried  the  mails  between 
Tampa  and  Key  West  was  slow,  and,  to  make  the  two  voyages  per 
week,  could  not  remain  in  Key  West  long  enough  to  allow  letters  to  bo 
answered  and  mailed  by  the  return  trip.  The  carriage  of  the  Havana 
mail  by  the  New  York  steam-ships  did  not  accommodate  the  people  of 
the  United  States.  All  letters  went  to  New  York  first,  and  the  nearer 
any  part  of  the  United  States  was  to  the  Island  of  Cuba  geographically 
the  farther  away  it  was  commercially. 

The  inferiority  of  the  service  rendered  it  evident  that  the  public  in- 
terests required  a  radical  change  in  the  method  of  dealing  with  the 
subject.  This  sentiment  culminated,  during  the  administration  of 
President  Arthur,  in  the  insertion  in  the  act  of  March  3,  1885,  making 
appropriations  for  the  Post-Office  Department,  of  a  provision  intended 
to  remedy  the  evil,  by  which  the  Postmaster-General  was  authorized  to 
contract  "  for  inland  and  foreign  steam-boat  mail  service,  when  it  can 
be  combined  in  one  route,  where  the  foreign  office  or  offices  are  not  more 
than  two  hundred  miles  distant  from  the  domestic  office  on  the  same 
terms  and  conditions  as  inland  steam-boat  service  and  pay  for  the  same 
out  of  the  appropriation  for  inland  steam-boat  service." 

About  the  time  this  act  was  passed,  being  informed  that  Tampn, 
Fla.,  was  about  to  be  connected  by  rail  with  all  the  principal  trade 
centers  of  the  United  States,  it  was  decided  by  myself  and  associates 
in  the  Plant  Investment  Comi)any  (a  corporation  created  under  the 
laws  of  Connecticut  and  controlling  a  jxntion  of  the  railroads  leading 


THE    UNITED    STAPES    AND    LATIN    AMKUFCA.  345 

from  tlio  Eastern  States  to  tlie  Gnlf  of  Mexico)  to  build,  upon  the  best 
reco<;uize(l  priucii)lesof  marine  sanitation,  two  fast  first-class  passenjjer 
steara-sliips  to  ply  between  Tampa,  Key  West,  and  Havana,  and  subse- 
quently the  MiiHcotte  and  Olivette  were  constructed  and  put  in  commis- 
sion under  the  name  of  the  Plant  Steamship  Line. 

CONFERENCE  WITH  THE  POSTMASTER- GENERAL. 

When  the  Post-Offico  Department  advertised  for  proposals  to  carry 
the  mails  from  Tampa  to  Key  West  and  Havana  and  return,  under 
the  provisions  of  the  act  referred  to,  I  put  in  a  bid,  find  for  what  hap- 
pened afterwards  I  will  quote  from  the  reports  of  Mr.  Vilas,  tlie  Post- 
master-General, and  Mr.  Knott,  the  Second  Assistant.    Mr.  Vilas  said: 

The  act  of  March  3,  1885,  authorized  a  contract  for  combined  inland  and  foreign 
steam-hoat  mail  service  in  one  route,  when  not  more  than  200  miles  intervened 
between  ours  and  the  foreign  office,  upon  the  same  terms  and  chargeable  on  the  same 
appropriation  as  a  contract  for  inland  steam-boat  service.  If  the  statute  can  be  made 
applicable  to  any  other,  it  was  without  doubt  designed  wholly  for  the  Gulf  route  be- 
tween the  coast  of  Florida  and  the  island  of  Cuba.  Pursuant  to  its  purpose  an  at- 
tempt was  made  during  the  last  year  to  negotiate  such  a  contract,  and  proposals 
were  duly  advertised  for.  Two  only  were  returned  for  service  between  Tampa  and 
Havana,  both  tendering  a  semi-weekly  service,  one  for  $100,000  a  year,  the  other 
for  |i6(),000.     The  price  was  deemed  excessive,  and  both  proff'ora  were  declined. 

The  purpose  of  the  Congress,  further  manifested  during  the  last  session,  and  the 
desirability  in  every  aspect,  that  a  highly  efficient  mail  service  should  be  established 
with  Cuba  in  connection  with  our  Atlantic  coast-line  from  New  England  and  New 
York,  induced  a  renewal  of  negotiation,  and  resulted  in  a  contract  for  service  between 
Tampa,  Key  West,  and  Havana  by  the  new  steamer  Mascotte,  and  a  consort  of  equal 
excellence  from  August  1,  1886,  to  June  30,  1887,  to  be  rendered  three  times  a  week 
between  November  1  and  April  30,  and  twice  a  week  during  the  residue  of  the  year, 
on  schedules  to  be  fixed  by  the  Department,  carrying  all  mails  both  ways  for  $54,450. 
This  service  covers  and  dispenses  with  that  before  mjiintaiued  between  Tampa  and 
Key  West,  at  an  annual  cost  of  $22,565.74 ;  performs  our  foreign  mail  carriage  to  Cuba 
and  Porto  Rico,  which,  computed  in  the  foreign  mails  office  at  sea  and  inland  post- 
age on  the  quantity  estimated  by  the  weights  of  1885  and  ordinary  increase,  amounts 
to  $24,159.07,  and  also  the  carriage  of  the  open  and  closed  mails  of  European  countries 
to  Cuba,  for  which  we  receive  now  about  $3,500. 

In  addition,  it  is  anticipated  that  arrangements  will  bo  made  to  transport  the 
Cuban  mails  to  this  country,  and  to  some  extent  their  European  mails,  and  thus  add 
a  substantial  sum  to  the  receipts  of  this  route.  Performance  of  this  trip  each  way 
in  twenty-live  hours  is  stipulated,  and  the  time  between  New  York  and  Cuba  is 
already  reduced  from  the  four  and  one-half  days  required  by  the  sea  voyage  to  throe 
days  by  this  service,  besides  a  greater  expedition  for  all  mail  originating  in  the  South  ; 
and  it  is  confidently  expected  that  within  no  long  period  the  railroad  time  will  be  so 
accelerated  between  Washington  and  Tampa  that  but  sixty  hours  will  separate 
Havana  and  New  York.  So  soon  as  such  celerity  shall  be  acquired,  in  addition  to 
the  regularity  and  security  of  the  new  service,  it  must  command  the  transportation 
of  all  mails  both  ways,  and  prove  not  only  of  high  value  to  business  correspondence, 
but  perhaps  directly  remunerative.  Peforo  bringing  this  negotiation  to  a  conclusion, 
the  two  lines  of  steamships  wiiich  ply  weekly  between  New  York  and  Havana,  were 
solicited  to  Tindertake  the  carriage  of  our  outward  mails  to  the  latter  port,  but  refused 
it  at  any  leas  price  than  $.500  ])(a-  trip,  leaving  the  Department  little  choice. 


346         TRADE  AND  TRANSPORTATION  BETWEEN 

The  arran2;f''iieiits  now  made  are  oxperinicntal,  limitofl  to  a  short  period,  and  snb- 
mitted  witli  particularity  of  detail,  in  order  that,  with  an  easy  view  of  all  the  cir- 
cunjstances,  the  Congress  may  readily  provide  such  other  or  further  directions  as 
shall  be  deemed  most  expedient. 

Mr.  Knott  said : 

Under  and  in  pursuance  of  the  power  conferred  by  the  act  of  March  3,  1885,  this 
Department  issued  on  the  6th  of  October,  1885,  proposals  for  carrying  the  mails  of 
the  United  States,  and  such  foreign  mails  as  might  bo  ordered,  in  safe  and  suitable 
steamships,  from  Tampa,  by  Key  West,  Fla.,  to  Havana,  Cuba,  twice  a  week  and 
back,  from  January  1,  1886,  to  June  30,  1888,  on  a  schedule  of  twenty-five  hours  for 
the  outward  trip  and  not  exceeding  twenty-seven  hours  for  the  return  trip.  Under 
this  advertisement  two  proposals  only  were  submitted,  but  the  amounts  of  the  bids 
were  deemed  too  high,  and  were  declined  by  the  Postmaster-General. 

The  commercial  intercourse  between  the  United  States  and  Cuba,  and  the  vexations 
delays  to  which  postal  service  between  that  island  and  the  United  States  were  subjected 
by  reason  of  the  inadequate  character  of  the  vessels  engaged  in  its  performance,  in- 
duced the  Postmaster-Geueral,  in  July  last,  to  contract  with  the  owners  of  the  steamer 
Mascotte  and  her  consort  for  the  establishment  of  a  line  of  postal  communication  be- 
tween Tampa,  via  Key  West,  to  Havana,  and  return,  beginning  August  1,  1886,  and 
terminating  on  the  30th  of  June,  1887,  on  schedules  satisfactory  to  the  Postmaster- 
General.  By  the  schedules  ordered  under  this  contract  this  service  is  to  be  performed, 
between  Tampa,  via  Key  West,  to  Havana,  twice  a  week,  from  August  1,  1886,  to 
November  1,  1886,  and  three  times  a  week,  from  November  1,  1886,  to  May  1,  1887, 
and  twice  a  week  for  the  remainder  of  the  contract  term,  with  a  running  time  of 
twenty-five  hours,  and  is  to  be  performed  in  close  connection  with  the  existing  fast 
mail  service  from  New  York  to  Jacksonville  and  back,  which  fast  mail  service  has, 
by  recent  legislation  of  Congress  and  by  orders  of  the  Postmaster-General,  been  ex- 
tended to  Tampa  to  make  prompt  connection  with  this  new  line  of  inland  and  foreign 
postal  communication. 

The  establishment  of  this  new  line,  furnishing,  as  it  does,  greatly  increased  facili- 
ties, will,  it  is  believed,  have  a  very  beneficial  effect  upon  commercial  intercourse 
between  this  country  and  the  island  of  Cuba. 

Heretofore  the  mails  from  any  part  of  the  United  States  to  Cuba  had  first  to  be 
transported  to  New  York  and  thence  by  steamship  to  Havana.  This  method  entailed 
great  delay  in  the  transmission  of  intelligence.  Through  the  agency  of  the  fast  lino 
running  from  New  York  to  Tampa  the  mails  from  any  point  in  the  United  States  can 
be  concentrated  on  it  and  carried  to  Tampa,  whence  they  will  bo  dispatched  via  Key 
West  to  Cuba. 

THE  ACTION  OF   CONGRESS. 

As  Mr.  Vilas  sngj]^ested,  Conj?rcss  did  take  up  the  subject,  and  in  tlie 
reported  debates  in  the  Congressional  Record,  complimentary  mention 
by  members  of  both  houses  and  both  political  parties  is  made  of  the 
route.  The  portion  of  the  act  of  March  3,  1885,  already  quoted,  was  re- 
enacted,  and  the  port  of  Tampa  xs^as  made  a  port  of  entry  and  a  customs 
collection  district.  A  second  contract  was  also  made  with  me  for  car- 
rying these  mails  for  one  year  from  July  1,  1887,  to  June  30,  1888,  and 
a  third  contract  from  July  1,  1888,  to  June  30,  1890,  the  service  to  l»e 
three  times  a  week  from  November  1  to  April  30,  and  twice  a  week  for 
the  residue  of  each  year,  for  the  yearly  com])ejisation  of  $.58,500,  to  be 
performed  with  the  steamships  ^l/^iscotte  and  0/i«6i^«,  or  ships  of  equally 
good  character. 


THE    UNITED    STATES    AND    LATIN    AMERICA.  347 

Owing  to  the  prevalence  of  yellow  fever  in  Florida  iind  tlie  islaiid  of 
Cuba  dnrinc:  the  suiiinier  aiid  fall  of  last  year,  the  DepiirtiiuMit  excused 
me  fioui  uiaking  the  third  trip,  and  deducted  from  the  $.j8,50()  about 
$450  for  each  voyage  not  made,  or  an  amount  equal  to  about  $11,700, 
leaving  a  net  balance  of  $40,800  for  the  year,  for  a  semi  weekly  service 
not  only  to  Key  Vv^est,  but  to  Havana  also. 

From  the  figures  already  given,  it  appears  that  the  average  annual 
cost  of  supplying  the  Key  West  post-office  alone,  for  the  seventeen 
years  immediately  preceding  my  contract,  was  $4(5,01 4.11  for  an  inferior 
service,  and  one  unsatisfactory  to  the  public  and  the  Department. 

The  anticipated  arrangements,  mentioned  by  Mr.  Vilas,  have  also 
been  made  for  the  transportation  to  this  country  of  the  Cuban  mails; 
and  for  the  i)ast  two  years  the  amounts  thus  far  collected  by  me  as  the 
agentof  the  United  States,and  credited  on  my  contract,  sum  up$8,932.78. 

In  addition,  the  regularity  of  the  service  is  so  well  understood  in 
Havana  that  much  of  the  business  mail  to  and  from  Europe  is  specially 
directed  via  the  United  States  and  Tampa,  instead  of  via  the  direct 
and  subsidized  lines  to  and  from  Europe.  Under  the  international 
postal  treaties,  the  United  States  collects  its  pi'oportionate  share  of 
the  postage  on  this  mail.  And,  as  suggested  by  Mr.  Vilas,  the  celerity, 
regularity,  and  security  of  this  service  will  soon  "command  the  trans- 
portation of  all  the  mails  both  ways,  and  prove  not  only  of  high  value 
to  business  correspondents,  but  perhaps  directly  remunerative." 

I  am  not  yet  informed  what  has  been  collected  by  the  United  States 
as  its  share  under  the  treaty;  but  we  now  have  sufficient  data  to  restate 
the  case  upon  the  figures  presented  by  Mr,  Vilas. 

The  year  prior  to  my  contract  a  semi-weekly  service  cost — 

Key  West  mail $22,505.74 

Foreign  mail,  Cuba  and  Porto  Kico..... 24,159.07 

Total |!4G,724.81 

Deduct  from  con  tract,  viz .5H,  5U0.  00 

Valne  of  the  third  trip 11,700.00 

And  the  semi- weekly  service  costs 4G,  800.00 

This  amount  should  bo  credited  with  one-half  collected  from 

Cuban  authorities 4,4G(i.  89 

And  amount  for  European  mails 3,  500.  00 

7, 9G6.  89 

Total  cost :?8, 8^:^.11 

This  amount  of  $3,500  was  estimated  by  Mr.  Vilas  on  the  basis  of  the 
year  1885,  but  as  indicated  from  the  increased  weights  of  this  mail,  the 
amount  now  received  must  be  much  greater. 

The  distance  from  Tampa  to  Key  West  is  20(1  miles;  from  Key  West 
to  Havana  about  100  miles,  making  the  total  distance  from  Tampa  to 
Havana  by  this  route  3GG  miles. 


348  TRADE    AND    TRANSPORTATION    r>ET\VEEN 

Whilst  for  the  .year  jiast  tlie  service  between  Tani[)a,  Key  West,  and 
Ilavana,  and  between  Hav^ana,  Key  West,  and  Tampa,  has  been  but 
twice  a  week,  it  is  now  tri-weekly,  connecting  at  Tanijta  with  a  daily 
service  to  and  from  all  parts  of  the  United  States  on  scht'dules  i)re- 
scribed  by  the  Post-Office  Department,  but  very  different  from  those 
mentioned  in  the  letter  of  James  E.  Ward  &  Co. 

CORRESPONDENCE  WITH  THE  POSTMASTER-GENERAL. 

April  10,  1889. 
Sir:  Refoniiig  to  the  converKation  that  our  Mr.  Ilnghos  had  with  your  f^ood  self  a 
few  (lays  ago  regarding  the  West  India  mail  service,  we  now  beg  to  submit  for  your 
consideration  a  few  remarks  showing  the  workings  of  the  present  system  and  reasons 
why  the  regular  steamers  plying  between  this  port  and  the  Island  o'f  Cuba  should  be 
employed  by  the  Government  for  the  conveyance  of  mails  with  a  fair  compensation 
for  the  same.     We  also  hand  you  the  itinerary  of  our  line  up  to  the  end  of  May  next, 
it  being  the  intention  of  our  company  to  continue  in  like  order  for  the  present. 
Trusting  that  the  matter  "will  meet  with  your  approval  and  favorable  decision, 
We  are,  dear  sir,  very  truly,  vours. 

Jamks  E.  WakI)  vV  Co. 
IFon.  John  Wanamaker, 

Postmaster-General,  Washington,  D.  C. 


ARGUMENT. 

(1)  The  regular  mail  route,  via  Tampa,  advertised  to  be  .i  daily  one  between  New- 
York  and  Havana,  has  never  performed  more  than  three  times  p<ir  week,  often  only 
once  per  week,  and  for  over  a  year  has  been  only  twice  per  weel<,  as  may  be  readily 
nnderstood  by  examining  the  Plant  Line  schedule  of  steamers  which  sail  from  Tampa, 
Fla.,  on  Mondays  and  Thursdays  only,  the  mails  intended  for  these  sailings  leaving 
New  York  on  Tuesdays  and  Saturdays  at  9  p.  m.,  and  should  arrive  at  Havana  on 
Wednesday  and  Saturdays  in  the  morning. 

For  return  of  mails  the  steamers  of  the  Plant  Line  leave  Havana  twice  per  week, 
on  Wednesdays  and  Saturdays,  reaching  New  York  on  Sundays  and  Wednesdays. 

(2)  The  Ward  Line  steamers  leave  New  York  on  Wednesdays  and  Saturdays,  and 
can  deliver  the  mails  on  Mondays  and  Thursdays,  the  latter  often  on  Wednesdays  in 
the  afternoon,  and  for  leturn  they  leave  Havana  on  Thursdays  and  Saturdays,  reach- 
ing New  York  on  Mondays  and  Wednesdays. 

{'.])  It  must  be  assumed  that  the  bulk  of  mail  is  a  business  one,  much  of  it  referring 
to  merchandise  ship)>ed  by  the  steamers  tliat  sail  from  New  York,  as  already  explained  ; 
s.ay,  papers  and  shipping  documents  necessary  to  make  entries  at  the  Cuban  custom- 
house, and  the  failure  to  produce  which  in  twenty-four  hours  after  the  arrival  of  the 
vessel  is  ])unis]jab]e  by  the  customs  regulations  by  line  imposed  upon  the  consignee, 
and  cjiusing  delays  in  the  discharge  of  caj'go  and  annoying  detentions  in  the  move- 
ments of  the  ships  which  have  to  go  to  other  ports  in  Cuba  and  to  various  Mexican 
porta. 

If  the  ship  carried  these  mails  shipping  documents  would  be  in  the  hands  of  con- 
signees invariably  at  the  same  time  that  the  goods  reacli  Havana,  and  all  lines, 
delays^  and  detentions  would  be  at  once  avoided. 

(4)  Saturday  mail. — If  a  train  to  Tampa  fails  to  make  all  connections  promptly,  the 
Plant  steamer  leaves  withput  the  mails,  which  have  to  wait  at  Tampa  until  the  next 
sailing,  three  days  later,  reaching  Havana  on  Saturday  in  place  of  Wednesd.'iy,  while 
the  steamer  leaving  New  York  tlie  same  day  is  at  Ilavana  on  Wednesday  afternoon. 

TncHiJaij  vuiil. — As  the  steamers  leave  New  Y<U'k  on  Wednesday,  said  Tuesday  mail 
can  have  no  reference,  or,  at  all  events,  but  litte,  to  the  cargo  then  being  made  up 


THE    UNITED    STATES    AND    LATIN    AMERICA.  349 

in  New  York  for  the  steauicr  wliich  leaves  tbo  following  day,  ami  the  mails  referriug 
to  such  cargo,  invoices,  and  other  valuable  information  are  consequently  held  until 
Saturday,  reaching  Havana  on  Wednesday,  against  the  arrival  of  the  steamer  early 
on  Monday,  and  the  only  salvation  against  fines  has  been  and  is  the  sending  by  New 
York  shippers  of  a  large  bulk  of  mail  matter  by  the  steamers  which  take  it  at  great 
inconveuience  and  expense  without  remuneration  whatever,  and  simply  to  help  the 
New  York  Cuban  trade. 

(."))  Up-malls.  —The  Florula  route  mail  leaves  Havana  on  Wednesday,  closing  at 
Havana  post-office  at  11  a.  m.,  and  therefore  can  have  no  reference  to  the  cargo  then 
being  prepared  for  the  regular  steamer,  which  sails  on.  Thursday  evening.  Said 
Wednesday  mail  reaches  Now  York  on  Sunday,  and  is  practically  in  the  bauds  of 
merchants  on  Monday  morning.  The  steamer  that  sails  Thursday  at  G  p.  m.  arrives 
at  New  York  on  Monday  morning,  so  that  the  mails  by  the  steamer,  twenty-nine 
hours  later  from  Havana,  are  delivered  in  New  York  at  the  same  time. 

The  next  mail  leaves  Havana  on  Saturday,  reaching  New  York  for  delivciy  on 
Wednesday  morning  at  the  same  time  thai;  the  steamer  that  leaves  Havana  Saturday 
at  6  p.  m. 

There  is,  therefore,  nothing  gained  actually  by  the  up-mail  system,  via  Tampa, 
and  the  Havana  postmaster,  knowing  this,  makes  a  mail  for  each  steamer  and  sends 
it  direct  to  New  York. 

(6)  These  steamers  have  been  running  a  number  of  years  with  the  greatest  regu- 
larity, and  at  all  seasons  of  the  year  perform  their  voyages  generally  on  time,  while 
the  Tampa  steamers  have  been  withdrawn  during  the  summer  months,  reilucing  the 
communicatiou  to  one  per  week,  aui,  as  wa^  the  case  last  year,  the  moment  that  the 
health  authorities  of  Florida  apprehend  any  danger  of  yellow  fever  the  railroad  con- 
nections are  broken,  and  the  mails  are  from  five  to  ten  days  in  transit. 

The  steamers  arriving  in  New  York  during  the  summer  deliver  their  mails  always 
on  time,  even  if  the  ships  are  quarantined.  » 

(7)  Merchants  here  and  vicinity,  in  their  anxiety  to  avoid  fines  in  Cuba  for  the  non- 
arrival  of  their  shipping  documents,  have  been  in  the  habit  of  sending  such  special 
mail  by  the  steamers,  which  was  delivered  at  Havana  by  messengers,  at  considerable 
expense,  until  the  Havana  post-office,  acting  under  advice  of  the  United  States  postal 
authorities,  demanded  the  delivery  at  the  post-office  of  all  such  mail,  and  notwith- 
standing that  they  are  covered  by  the  proper  stamped  envelopes,  have  been  demand- 
ing and  collecting  triple  postage  as  a  fine,  a  tax  which  creates  great  dissatisfactiou, 
and  is  the  cause  of  constant  complaint ;  the  steam-ship  line,  though  entirely  innocent 
in  the  matter,  coming  in  for  considerable  of  the  blame. 

(8)  Compensation. — The  rates  allowed  steamers  have  never  been  adequate,  and  this 
is  particularly  noticeable  in  the  West  India  service,  because  the  expense  for  carrying 
and  delivering  vras  the  same — and  we  are  not  sure  but  what  it  was  greater — as  the 
European  mails,  being  so  much  larger,  naturally  produce  more  in  dollars  and  cents; 
and,  so  far  as  the  West  India  mails  were  concerned,  the  Government  never  made 
allowance  for  the  expense  of  the  ships  which  had  to  send  after  the  mails,  carry  its 
deliver  it,  and,  during  four  months  of  the  year,  pay  for  steam-boats  to  bring  it  from 
quarantine  at  a  heavy  expense  and  always  the  same,  no  matter  whether  there  was 
one  or  one  hundred  bags,  to  say  nothing  of  the  responsibility  involved.  The  Post- 
Office  Department  is  always  on  the  qui  vive  and  holding  us  responsible  for  the 
slightest  delay  or  discrepancy  in  its  delivery.  The  Government's  claim  that  these 
American  ships  were  greatly  benefited  by  reason  of  having  mail  certificates  in  West 
India  iiorts,  falls  to  the  ground  by  simply  stating  that  for  a  period  of  four  years  we 
have  been  running  without  them  and  have  not  had  the  slightest  ripple  in  those  for- 
eign waters.  « 


June  5,  1889. 
Dear  Sir  :  As  an  illustration  of  the  facts  pointed  out  to  you  in  previous  corre- 
spondence, regarding  the  Havana  mails  via  Tampa,  we  have  now  to  mention  what 
has  just  occurred.    Owing  to  interruptions  along  the  line  of  the  railroad  south,  the 


350  TRADE    AM)    TKANSI'UKTATION    BETWEEN 

mails  that  left  llavaua  Weduesdaj',  May  2'J,  at  1  j).  ui.,  did  not  roach  New  York  until 
yesterday,  Tuesday,  June  4,  at  noon;  ■whereas  our  steamer,  Cili/  of  Ifusliintilon, 
whicli  left  llavaua,  Thursday,  May  'M,  delivered  what  mails  she  brought  ou  Mou- 
day,  Juno  'A,  at  5  p.  ni. 

Upon  orders  sent  via  Tampa  doi»onded  the  freight  to  be  forwarded  by  our  steamer 
leaving  to-morrow,  v.hich,  in  consequence  of  the  delay,  is  materially  reduced,  caus- 
iug  us,  as  carriers,  considerable  loss,  and  to  the  merchants  of  the  Cuba  trade  much 
inconvenience,  as  there  will  be  no  departure  for  Santiago  do  Cuba  and  Cieufuegos, 
until  July  5,  after  to-morrow's  ship. 
Kesiicctfnlly,  yours, 

James  E.  Ward  &,  Co. 
Hon.  John  Waxamaker, 

Postmasttr-G eneral,  Washinglon,  D.  C. 

KEPLY  OF   MR.   PLANT. 

I  desire  especially  to  correct  the  errors  iu  these  letters.  Their  so- 
called  ''argument"  is  set  forth  in  numbered  paragraphs,  and  I  will 
consider  them  iu  the  same  numerical  order: 

No.  1.  To  the  allegations  therein  made,  I  replj'^  that  my  contract  is 
for  tri-weekly  service  from  November  1  to  April  30,  and  semi-weekly 
service  for  the  balance  of  the  year.  The  service  is  and  has  been  per- 
formed as  directed  by  the  Department,  and  compensation  paid  in 
accordance  therewith.  The  statement  that  the  service  has  been  "  often 
only  once  per  week"  is  incorrect.  During  the  three  years  that  this 
service  has  been  performed  by  tlie  Plant  Steauj-ship  Line,  it  has  never 
failed  to  deliver  the  mails,  received  daily  at  Tampa,  twice  a  week  in 
Havana,  In  two  instances  the  railroad  line  from  New  York  was  ren- 
dered impassable  for  some  days,  once  by  the  great  blizzard  of  1888,  and 
once  by  the  freshet  of  1889,  hereinafter  alluded  to,  when  the  ship  was 
compelled  to  leave  Tampa  without  the  delayed  mails,  iu  order  to  return 
from  Havana  on  her  schedule. 

The  mails  by  this  route  do  not  leave,  and  have  never  left.  New  York 
on  Tuesdays  and  Saturdays  at  0  p.  m.,  but  on  Wednesdays  and  yuudays 
at  4.15  a.  m.  Returning,  the  Wednesday  mail  from  Havana  reaches 
New  York  on  Saturday,  and  the  Saturday  mail  on  Tuesday,  and  not  on 
Sunday  and  Wednesday. 

A  sleeper  from  New  York  to  Tampa  leaves  New  York  at  1)  p.  m. 
daily,  but  the  dispatch  of  Florida  and  West  India  mails  is  seven  hours 
and  lifteen  minutes  later.     (■4.15  a.  m.) 

No.  2  is  a  statement  of  the  i)ossible  performances  of  Messrs.  Ward  & 
Co.'s  own  line,  with  which  I  have  no  concern, 

No.  3,  while  it  is  a  correct  assumption  that  the  bulk  of  the  mail  to 
Cuba  is  on  business,  it  does  not  follow  that  the  mail  service  performed 
by  the  Plant  Steam -ship  Line  between  Tampa,  Key  West,  and  Havana 
relates  almost  entirely  to  shipments  fron)  New  York  to  Havana  by  the 
steam-ships  of  which  Ward  »S:  Co.  are  agents. 

To  the  extensive  cigar  maiuifacturers  at  Key  West  the  service  is  so 
satisfactory  that  they  rely  upon  the  recei^it  of  orders  one  day  to  be 


THE    UNITED    STATES   AND    LATIN    AMERICA,  351 

tilled  by  the  ship  Icavinjjf  tiic  next  day  lor  New  York,  and,  to  the  per- 
sonal knowledge  of  the  writer,  the  Hav^ana  merchants  consider  it  a  great 
advantage  to  have  a  reliable  and  regular  arrival  of  the  mail  from  the 
United  States  and  Europe  at  G  a.  m.,  as  it  enables  them  to  prepare  and 
pass  their  papers  through  the  custom  house  on  or  before  the  arrival  of 
their  consignments.  This  is  especially  true  of  shipments  by  the  Ward 
line. 

No.  4.  As  to  what  might  happen  if  the  Plant  steamers  left  Tampa 
without  the  mails  it  is  needless  to  inquire.  The  sorvic(>  from  New  York 
to  Tampa  is  [>erfornjed  under  special  contract  for  what  is  known  as  the 
West  India  fast  mail.  It  is  a  continuous  service,  leaving  New  York 
daily  at  4.15  a.  m.  and  arriving  at  Tampa  the  following  evening.  The 
steamer  has  never  left  Tampa  but  on  two  occasions  without  the  whole 
of  the  New  York  mails,  as  stated  in  reply  to  No.  1,  and  never  without 
carrying  all  the  mails,  for  Key  West  and  Havaiia,  accumulated  at 
Tampa,  by  the  daily  arrivals  from  all  i)arts  of  the  country  and  deliv- 
ered by  the  postal  authorities. 

No.  5.  The  same  is  true  as  to  the  return  mails  from  Havana  and  Key 
West  to  Tampa.  The  Wednesday  mail  from  Havana  arrives  at  New 
York  on  Saturday  and  not  on  Sunday.  The  Saturday  mail  arrives  at 
New  York  on  Tuesday  and  not  on  Wednesday. 

This  schedule  is  not  fixed  by  the  Plant  Steamship  Line,  but  by  the 
United  States  PostOffice  Department  in  the  interest  of  the  public. 
By  it  letters  can  be  written  and  mailed  not  only  in  New  York  City,  but 
in  almost  any  part  of  New  England,  upon  the  da^^  of  departure  of  the 
Ward  steamer  after  the  hour  of  closing  the  mail  for  the  steamer,  bo 
forwarded  by  rail  to  Tampa,  thence  by  the  Plant  Steamship  Line  to 
Havana,  and  be  delivered,  nine  times  out  of  ten,  at  least  twenty  hours 
before  the  arrival  of  the  Ward  ship. 

The  return  mail,  too,  is  not  only  delivered  in  New  York,  but  in  Boston 
.and  other  cities  farther  north  than  New  York  before  the  arriv^al  of  the 
Wardship  leaving  Havana  on  the  same  day.  As  to  the  places  south 
and  west  of  New  York,  and  nearer  by  rail  to  Tampa,  the  advantages  of 
the  present  route  are  so  glaringly  api)arent,  that  it  is  only  necessary  to 
say  that  all  letters  to  and  from  Havana  do  not  now  go  first  to  New  York 
and  thence  to  destination.  Messrs.  Ward  &  Co.,  by  changing  their  sail- 
ing days,  or  by  inducing  the  De])artment  to  alter  the  ])resent  schedule, 
might  better  accommodate  themselves  ;  but  their  eftbrt  to  have  the  Hav- 
ana mails  sent  by  their  steamers,  rather  than  by  the  Plant  Steamshii) 
Line,  is  not  in  the  interestof  the  public,  nor  of  close  commercial  relations 
with  the  West  Indies  and  the  United  States. 

No.  G.  The  mails  between  New  Y'ork  and  Havana  were  carried  with 
regularity  and  on  schedule,  via  Tampa,  during  the  yellow  fever  epi- 
demic of  1S88. 

No.  7.  The  regulations  of  the  Havana  i)ost-office  are  beyond  the 
control  of  the  management  of  the  Plant  Steamship  Line, 


352  TRADE    AXD    TRANSPORTATION    BETWEEN 

No.  8.  The  same  is  true  as  to  the  reguhitious  of  the  Uiiiteil  States 
Post-Office  Departnieut. 

Ill  coutinnatiou  of  the  strictures  upon  the  mail  service  by  the  Plaut 
Steamship  Line,  Messrs.  Ward  &  Co.  follow  up  their  letter  of  April 
1,  1880,  by  another  dated  June  5,  1889,  calling  attention  tliat,  the  mail 
leaviug  Havana  Wednesday,  May  29,  at  1  p.  m.,  did  not  reach  New 
York  until  Tuesday,  June  4,  while  their  steamer,  which  left  Havana  on 
Thursday,  May  30,  arrived  at  New  York  at  5  p.  m.,  on  Monday,  June  3. 

Assuming  this  statement  to  be  correct,  Messrs.  Ward  &  Co.  admit 
that  this  delay  was  not  due  to  any  irregularity  between  Havana  and 
Tampa,  but  to  interruptions  along  the  line  of  road.  In  this  they  are 
correct,  for  it  was  the  same  storm  which  led  to  the  terrible  calamity  at 
Johnstown,  which  carried  away  the  Long  Bridge  at  Washington,  and 
led  to  the  only  delay  during  the  year  of  the  regular  delivery  of  the 
north-bound  mail. 

Are  Messrs.  Ward  «&  Co.  willing  to  apply  the  same  test  to  their  own 
service?  Is  it  proof  against  the  assaults  of  the  elements?  If  it  be, 
how  was  it  that  the  ship  leaving  Havana  on  Thursday,  September  5, 
did  not  arrive  at  New  York  until  tlie  13th  ;  that  the  ship  leaving  Ha- 
vana on  the  7th,  did  not  arrive  at  New  York  until  the  14th ;  that  the 
ship  leaving  Havana  on  October  5,  did  not  arrive  at  New  York  until 
the  11th  ?    And  this  is  their  it-cord  for  only  the  past  two  months. 

Messrs.  Ward  &  Co.'s  views  as  to  the  advantage  to  their  business  of 
having  all  the  mails  from  the  United  States  to  Cuba  carried  by  their 
ships  may  be  all  right  from  their  standpoint,  but  they  lose  sight  of  the 
tact  that  Boston,  Philadelphia,  Baltimore,  Washington,  Cliarleston, 
Savannah,  Jacksonville,  Cincinnati,  Chicago,  St.  Louis,  New  Orleans, 
and  other  cities  in  the  United  States,  and  indeed  the  entire  Northwest, 
West,  and  Southwest,  have  a  large  business  correspondence  with  Cuba 
and  the  West  Indies,  which  is  greatly  facilitated  by  the  mail  service 
through  Tampa ;  also  that  Key  West,  the  tropical  outpost  of  the  * 
United  States,  with  a  valuable  trade  with  Florida  and  Cuba,  is  alto- 
gether dependent  on  the  same  service. 

THE  PLANT   STEAMSHIP  LINE. 

The  first  ship  of  this  line,  the  Mascotte,  was  the  first  American 
ship  in  which  tlie  principle  of  triple  expansion  in  marine  engines  was 
used  for  commercial  purposes. 

The  Olivette,  the  second  ship  of  this  line,  is,  up  to  this  time,  proba- 
bly the  fastest  commercial  ship,  wliich  carries  the  flag  of  the  Unite«l 
States  into  a  foreign  port.  These  ships  established  the  principle  of 
building  shi[)s  of  high  si)eed  on  a  light  drauglit,  and  immediately  ui)on 
the  results  shown  by  them  there  has  followed  the  construction,  in 
American  ship-yards,  of  other  shii)s  of  similar  design,  for  the  commerce 
of  ports  not  admitting  vessels  of  heavy  draught. 

There  is  another  service  that  the  line  has  performed  for  science  and 


THE    UNITED    STATES    AND    LATIN    AMERICA.  353 

humanity,  which  should  not  be  forgotten.  The  ships  above  referred  to 
were  coustruoted  in  accordance  with  the  prin(;ij)les  of  modern  maritime 
sanitation,  and  the  results  which  have  followed  u])on  four  years  of  com- 
munication between  Havana  and  Tampa  by  this  line  are  indorsed  by 
the  most  distinjijuished  authorities  on  the  subject,  as  convincin<,'  evidence 
of  the  practicability  of  maintaining  in  safety  communication  with  an 
infected  port. 

The  equipment  provided  for  this  ad  ^antageous  service  to  the  public 
is  not  now  employed  with  such  profit  to  the  owners  as  would  justify 
the  expenditure  but  for  their  faith  in  the  permanency  and  development 
of  the  commercial  relations  of  the  United  States  and  their  belief  that 
the  future  will  bring  compensation  for  the  initiatory  labors  of  the 
present. 

Already  the  beneficial  efl'ect  of  the  establishment  of  this  mail  route 
is  felt;  it  has  opened  up  a  trade  between  the  Gulf  coast  of  Florida  and 
Havana,  which  has  in  three  years  created  a  prosperous  industry  at 
Tampa,  in  the  making  of  cigars  from  Havana  tobacco;  it  has  raised  the 
duties  collecterl  at  that  y)ort  from  nothing  in  1884  to  $180,000  in  1888, 
on  imports  valued  at  $800,000.  The  imports  at  Key  West,  mostly  from 
Havana,  amounted  during  the  past  twelve  months  to  about  $1,250,000. 

Believing  that  anything  that  can  be  said  on  the  subject  will  be  gladly 
received  by  you,  I  desire  to  say  a  word  or  two  in  regard  to  the 

TRANSPORTATION  OF   OUR  FOREIGN  MAILS. 

Long  observation  and  experience  have  made  strong  the  impression 
that  the  interests  of  the  people  of  the  United  States  are  accorded 
greater  respect  and  are  really  better  advanced  in  foreign  ports  through 
their  merchant  marine  than  they  can  be  in  any  other  way.  It  is,  more- 
over, in  my  opinion,  greatly  to  the  interest  of  every  producer  and  man- 
ufacturer in  the  country  that  the  most  expeditious  and  direct  mail  serv- 
ice be  maintained  between  our  principal  sea-ports  and  those  of  foreign 
nations  with  which  there  would  be  reciprocities  of  trade. 

I  think  that  the  United  States  Government  should  make  sufficient 
appropriations  and  authorize  the  Postmaster-General  to  make  contracts 
for  the  transportation  of  the  mails  of  the  United  States  between  it 
and  foreign  countries,  in  such  manner  and  for  such  compensation  as 
would  enable  him  to  secure  the  best  attainable  service  in  ships  of  United 
States  construction,  and  of  such  capacity  and  speed  as  will  be  most 
useful  to  the  United  States  in  time  of  war.  Doubtless  the  best  method 
of  fixing  compensation  for  the  service  rendered  would  be  upon  the 
basis  of  distance  the  mails  are  carried  at  minimum  speed,  with  a  grad- 
uated scale  prescribing  increased  pay  for  increased  speed  and  regular- 
ity of  schedule.  In  making  appropriation  for  this  service  it  should  not 
be  forgotten  that  the  purposes  of  the  Post-Office  Department  are  to 
facilitate  correspondence,  both  social  and  commercial,  to  benefit  the 
foreign  trade  of  its  people  as  well  as  the  domestic,  and  that  expenditure 
S.  Ex.  54 23 


354         TRADE  AND  TRANSPORTATION  BETWEEN 

for  service  by  steamers  of  great  capacity  and  draught  is  as  justifiable  as 
proper  compensatiou  to  one  of  small  capacity  and  light  draught  in  the 
waters  of  the  United  States. 

The  domestic  mails  of  the  United  States  are  carried  for  the  social  and 
commercial  use  of  its  people,  and  without  them  tliere  would  be  no  busi- 
ness. It  is  as  important  for  trade  and  commerce  with  our  neighbors 
that  we  should  have  as  efficient  foreign  mail  service  as  domestic,  and 
without  it  we  can  not  have  an  important  trade  with  countries  with  which 
closer  trade  relations  are  desired.  If  we  would  have  foreign  trade  Me 
must  supply  mail  facilities. 

I  believe  that  the  interests  of  the  country  require  that  American  built 
and  manned  ships  engaged  in  carrying  the  mail  under  contract  with 
the  Post-Office  Department  should  be  relieved  from  many  of  the  bur- 
dens that  are  now  imposed  upon  the  ships  of  the  United  States  in  its 
own  ports.  For  instance,  ships  that  are  required  by  the  laws  of  the 
United  States  to  carry  a  licensed  pilot  of  the  United  States  should  not 
be  required  to  take  on  and  pay  a  pilot  to  enter  a  harbor  when  there  is 
no  necessity  for  his  services. 

Now  a  word  for 

TAMPA,  FLA. 

The  Gulf  of  Mexico  is  really  a  vast  inland  sea,  its  waters  extending 
for  some  fifteen  hundred  miles  along  five  great  States  of  the  Union, 
and  also  bounding  Central  American  countries  for  a  like  distance.  The 
United  States  Government  has  long  desired  a  deep  harbor  on  this  water, 
has  given  great  attention  and  scientific  skill  to  the  subject,  expended 
large  sums  of  money  to  accomplish  that  object,  and  is  now  engaged  in 
extensive  harbor  improvements  at  many  places,  the  purpose  being,  of 
course,  to  facilitate  trade  with  foreign  countries. 

In  Tampa  Bay,  on  the  Gulf  of  Mexico,  located  well  south  on  the  pe- 
ninsula of  Florida  and  very  easy  of  access,  is  a  fine  harbor,  well  shel- 
tered and  protected  by  islands,  with  an  expanse  of  deep  water  sulti(Ment 
to  afford  anchorage  for  the  commerce  of  the  United  States,  which  has 
recently  become  convenient  through  railroad  connection  with  wharves, 
at  which  vessels  drawing  25  to  30  feet  of  water  may  safely  lie.  The 
extension  of  the  railway  system  to  Port  Tampa,  10  miles  below  Tampa, 
brings  the  trains  to  a  depth  of  water  of  25  to  30  feet,  where  these  large 
and  substantial  wharves,  recentlj'  erected  at  great  expense,  offer  every 
facility  for  the  convenience  of  commerce.  The  bay  is  admirably  located 
for  defense  in  case  of  war,  and  with  the  adeciuate  railroad  facilities 
diverging  from  Tampa,  is  the  most  convenient  and  safe  rendezvous  for 
shipping  on  the  eastern  shore  of  the  Gulf  of  Mexico. 

The  commerce  of  the  port  of  Tampa  is  rapidly  increasing,  as  shown 
by  the  customs  receipts.  Besides  the  Plant  Steam-ship  Line  between 
Tampa,  Key  West,  and  Havana,  there  is  now  a  regular  line  of  steamers 
between  Tampa  and  Mobile,  and  an  experimental  one  between  Tampa 
and  Honduras.    It  is  hoped  that  a  steam-ship  line  will  be  established  at 


THE    UNITED    STATES    AND    LATIN    AMERICA  355 

an  early  day  between  this  port  aud  Aspinwall,  affording  the  most  ex- 
peditious connection  ever  known  between  all  ])arts  of  the  United  States 
aud  Central  America  and  the  west  aud  a  portion  of  the  north  coast  of 
South  America. 

It  is  not  unreasonable  to  anticipate  that  the  natural  growth  and  ex- 
pausiou  of  commerce  in  the  Gulf  of  Mexico  will  rapidly  advance  the 
port  of  Tampa  iu  the  scale  of  importance  ;  to  this  add  the  great  results 
in  commercial  intercourse  that  will  surely  be  evolved  as  the  outcome  of 
the  intelligent  labors  of  the  International  Conference,  aud  Tampa,  with 
its  convenient  and  superior  location  and  great  advantages,  will  doubt- 
less ere  long  enter  upon  the  career  of  commercial  importance  and  pros- 
perity to  which  she  is  undoubtedly  entitled. 

I  feel  assured  that,  if  you  will  give  careful  consideration  to  what  is 
here  set  forth,  you  will  be  convinced  that  the  facts  connected  with  the 
establishment  of  fast  mail  service  between  Tampa,  Key  West,  and 
Havana,  will  be  of  value  to  you  in  your  further  elucidations  of  the  im- 
portance to  the  United  States  of  the  encouragement  of  commerce  with 
foreign  countries  under  its  own  flag. 

In  conclusion,   permit  me  to  call  your  attention  to  the  annexed 
memorial  from  the  banks,  merchants,  and  importers  of  Havana,  in  which 
they  express  their  views  as  to  the  workings  of  the  foreign  mail  service 
to  and  from  Havana,  as  performed  by  the  Plant  Steam-ship  Line. 
Very  respectfully, 

H.  B.  Plant. 

Hon.  William -Eleroy  Curtis, 

Washington,  D.  C. 


-J 


UNIVERSITY  OF  TAI I pr^' 


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